The Israeli CPI reading for June was much lower than expected. The index was expected to show an increase of 0.2% -0.3%, but in the event it was unchanged. Annual inflation fell to 4.2% from 4.5% and is expected to fall further in the coming months.
Notable price increases in June included food, which rose 0.6%, health care, 0.4%, and education, culture, and entertainment, which rose 0.2%.
Notable price declines in June include fresh fruit and vegetables, which fell 4.6%, clothing and footwear, which fell 3%, and furniture and home equipment, which fell 0.8%.
What is of concern is that the residential rents item rose 0.5%.
The House Price Index shows that prices for new and used homes in April and May 2023 decreased by 0.3% compared to March-April 2023. In the breakdown by region, prices increased in Jerusalem and were unchanged in the North and Haifa. Home prices fell 0.1% in Tel Aviv, down 1.1% in the center, and 0.5% in the south.
The Home Price Index increased by 7.6% in April-May 2023 compared to April-May 2022. The New Home Price Index increased by 8.8% in that period.
Published by Globes, Israel business news – en.globes.co.il – on July 14, 2023.
© Copyright Globes Publisher Itonut (1983) Ltd., 2023.
