Inflation in Israel is not declining: the country’s Consumer Price Index (CPI) increased by 0.8% in April 2023, the Central Bureau of Statistics announced this evening. Analysts had expected a rise of only 0.4%-0.5%, which would have seen annual inflation fall to 4.6-4.7% but instead, in the past 12 months, CPI has increased by 5%, unchanged from last month.
There were notable rises in the prices of fresh fruits and vegetables in April (4%), transportation (2.5%), clothing and footwear (1.9%), culture and leisure (1.8%), housing costs (0.5%), and food (0.4%).
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There was a notable decline in prices last month in home maintenance products (0.5%) and home furnishings and equipment (0.2%).
Changes in house prices are published at the same time as the consumer price index but are not included in it. In February-March 2023, housing prices were unchanged compared to January-February 2023, and increased by 11% compared to February-March 2022.
A higher-than-expected CPI reading will influence the Bank of Israel’s interest rate decision next week. Even before the release of the April CPI, analysts expected the Bank of Israel to raise the rate at its next meeting as part of its efforts to curb inflation by 70%.
Published by Globes, Israel business news – en.globes.co.il – on May 15, 2023.
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