CPI unexpectedly fell in September

The Israeli Consumer Price Index (CPI) unexpectedly fell by 0.2% in September, while analysts expected it to remain unchanged. In the 12 months to the end of September 2024, the inflation rate fell slightly to 3.5% from 3.4% at the end of August, according to figures released by the Central Bureau of Statistics today. Therefore, inflation remains well above the upper end of the Bank of Israel’s annual target range of 3%.

Notable price declines in September included transportation, which was down 2.6%, culture and entertainment, which was down 1.3%, clothing and footwear, which was down 1.2%, and fresh fruit, which was down 1.1%.

Notable price increases in September included fresh vegetables, which rose 6.7%, education services, which rose 1.3%, and home furnishings and equipment, which rose 0.6%.

The Central Bureau of Statistics also published the change in house prices (which are not part of the general CPI) between June-July 2024 and July-August 2024. On average, prices rose by 0.3%. This was the ninth straight month in which prices rose, after several months of decline before that. Distribution by region, prices decreased by 0.5% in Jerusalem, but increased by 0.4% in the north, rose by 1.6% in Haifa, 0.4% in the center, 0.1% in Tel Aviv, and by 0.3% in the south. Prices of new apartments increased by 1.3%.

In the comparison between July and August 2024 and July and August 2023, the housing price index increased by 6.3%. Distribution by region, prices increased by 10.2% in Haifa, 8.8% in the central region, 6.3% in the north, 5.7% in the south, 5.1% in Jerusalem, and 3.3% in Tel Aviv. Prices of new apartments increased by 3.2% over the past year.

Published by Globes, Israel Business News – en.globes.co.il – on October 15, 2024.

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