CPI up 0.4% in April

The rise, in line with estimates, was mainly driven by rising rents.

The Consumer Prices Index (CPI) rose by 0.4% in April, the Central Bureau of Statistics reported today. The rise, in line with estimates, is the sharpest monthly rise so far this year.

Half the rise is explained by a sharp upturn in the housing services item, which reflects rents, of 1.1%.

Other large rises were in clothing and footwear (4.8%), and fresh fruits (6.9%). The price of tomatoes rose 16%. By contrast, fuel prices fell.

Inflation year-to-date is 0.4%, a long way from the mid-point of the government's target range of 1-3% Inflation over the past twelve months was 0.8%.

The April CPI reading shows that there is no problem of inflation in the economy, with demand dropping as the economy slows down, except in housing.

The Central Bureau of Statistics also reports that, from a comparison of transactions in February-March 2013 with transactions in January-February 2013, home prices rose 0.5% (this figure does not form part of the CPI).

Published by Globes [online], Israel business news - www.globes-online.com - on May 14, 2013

© Copyright of Globes Publisher Itonut (1983) Ltd. 2013

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