Inflation in Israel surges above target range

Israel's Consumer Price Index (CPI) increased by 0.6% in July, exceeding expectations. Over the twelve months leading to the end of July 2024, inflation rose to 3.2% from 2.9% at the end of June, according to data from the Central Bureau of Statistics. This marks a return of inflation above the Bank of Israel's annual upper target limit of 3%, News.Az reports citing Globes .

Prominent price rises in July included fresh fruit and vegetables, which rose 3.2%, culture and entertainment, which rose by 1.8%, rents and housing maintenance, which rose 0.8% each, and food and transport, which rose 0.5% each.

Prominent price declines in July included clothing and footwear, which fell 2.4%, and furniture and household equipment, which fell 0.6%.

The Central Bureau of Statistics has also published the change in home prices (which are not part of the general CPI) between April-May 2024 and May-June 2024. On average, prices rose 0.7%. This was the seventh consecutive month that prices have risen after many months of declines. In the breakdown by region, prices rose by 0.7% in Jerusalem, by 1.5% in the north, and by 1.2% in Haifa, 0.6% in the center, and 0.5% in Tel Aviv, and by 0.2% in the south. Prices of new apartments fell 0.9%.

In the comparison between May-June 2024 and May-June 2023, the index of housing prices rose 4.7%. In the breakdown by region, prices rose by 9.7% in Haifa, 6.3% in the north, 4% in Tel Aviv, 3.9% in the central region, 3.8% in Jerusalem and 3.7% in the south. The index of new home prices fell 0.6%.

News.Az