July CPI reading well above expectations

Inflation in Israel has moved above 5% annually and housing prices have risen nearly 18% over the past year.

Israel’s Consumer Price Index (CPI) rose 1.1% in July, the Central Bureau of Statistics reported this evening, far above the economists’ expectations of between 0.5% and 0.7%. Inflation remains at its highest level in Israel for well over a decade. Inflation over the past 12 months is now 5.2%, well above the Bank of Israel’s annual target range for inflation of between 1% and 3%.

Among the prominent rises in prices in July was fresh fruit, which rose 8.5%, transport (3.3%), and housing costs (1.2%). Clothing and footwear prices fell 4% in July.

Housing prices rose 2% in May-June compared with April-May and have risen 17.8% over the past 12 months, up from 15.9% last month, the Central Bureau of Statistics reported.

In May-June compared with April-May, housing prices in Jerusalem rose 3%, in the north 2.6%, Haifa (2.3%), Tel Aviv (2%),central Israel (1.7%), and the South (1%).

Published by Globes, Israel business news – en.globes.co.il – on August 15 2022.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2022.

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