Israel’s Consumer Price Index (CPI) rose 0.9% in August, far above analysts’ expectations of 0.5%-0.6%. In the twelve months to the end of August 2024, the rate of inflation has risen to 3.6% from 3.2% at the end of July, according to figures released by the Central Bureau of Statistics today. Thus inflation has risen further above the Bank of Israel’s annual target range upper limit of 3%.
Prominent price rises in August included fresh vegetables, which rose 13.2%, transport rose 2.8%, housing costs rose 0.6%, education, culture and entertainment rose 0.5% each, housing maintenance rose 0.4%, and food rose 0.3%.
Prominent price declines in August included clothing and footwear, which fell 1.1%, communications fell 0.8% and furniture and household equipment, which fell 0.4%.
The Central Bureau of Statistics has also published the change in home prices (which are not part of the general CPI) between May-June 2024 and June-July 2024. On average, prices rose 0.9%. This was the eighth consecutive month that prices have risen, after many months of declines before that. In the breakdown by region, prices rose by 0.1% in Jerusalem, and fell 0.2% in the north, but rose by 0.8% in Haifa, 1.8% in the center, and 1% in Tel Aviv, and by 0.4% in the south. Prices of new apartments rose 1.2%.
In the comparison between June-July 2024 and June-July 2023, the index of housing prices rose 5.8%. In the breakdown by region, prices rose by 9% in Haifa, 7.6% in the central region, 5.8% in Jerusalem, 5.6% in the north, 4% in the south and 3.6% in Tel Aviv. Prices of new apartments rose by 0.9% over the past year.
Published by Globes, Israel business news – en.globes.co.il – on September 15, 2024.
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