Israel's consumer price index rose 0.2% in May, well below economists' expectations of between 0.5% and 0.6%. In the 12 months to the end of May, inflation remained unchanged from last month at 2.8%, according to figures released by the Central Bureau of Statistics today. Economists had expected the inflation rate to rise to 3.1%-3.2%, which is higher than the Bank of Israel's maximum annual target of 3%.
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Inflation saw a rise above the Bank of Israel's target range
Notable price increases in May included fresh fruit, which rose 10.3%, while clothing and footwear rose 2.2%, and food, culture and entertainment prices rose 1%. The prices of furniture, household equipment, and housing maintenance increased by 0.4%.
Notable price declines in May included fresh vegetables, which fell by 2.4%, and furniture and transportation, which fell by 1.7%.
The Central Bureau of Statistics also published the change in house prices (which do not form part of the general CPI) between February-March 2024 and March-April 2024. On average, prices rose by 0.9%. This was the fifth month in a row that prices rose after several months of decline. Distribution by region, prices increased by 0.8% in Jerusalem, by 0.5% in the north, and by 1.6% in Haifa. Prices rose by 0.6% in the center, by 1.1% in Tel Aviv, and by 0.9% in the south. Prices of new apartments increased by 0.9%.
In comparison between March and April 2024 and March and April 2023, the housing price index increased by 2.1%. Distribution by region, prices increased by 6.6% in Haifa, 3.7% in the north, 1.9% in Jerusalem, 1.9% in the central region, 0.1% in Tel Aviv, and 3.6% in the south. The new home price index fell by 0.3%.
Published by Globes, Israel Business News – en.globes.co.il – on June 14, 2024.
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