CPI up 0.4% in March, housing prices rising

Supermarket purchases  / Photo:  Cadya Levy, Globes
Supermarket purchases / Photo: Cadya Levy, Globes

The Central Bureau of Statistics says it completely ignored prices in some sectors in making its calculations, such as travel abroad, cultural and sporting events.

Israel's Consumer Price Index (CPI) rose 0.4% in March, the Central Bureau of Statistics reported this afternoon. In the first quarter of 2020, the CPI has fallen 0.1% and over the past 12 months, the CPI is unchanged. Housing prices continue to climb and have risen 3.9% over the past 12 months.

In March, there were notable rises in prices of clothing and footwear (3.2%), fruit and vegetables (1.8%), housing related costs (0.9%), and food (0.6%). There was a notable fall in prices of fresh vegetables (1.9%).

Housing prices (which do not form part of the CPI) have continued to rise. In comparison with transaction prices in the period December-January 2019/2020, prices in January to February 2020 were 0.6% higher, and they were 3.9% higher than in the corresponding period twelve months earlier (January-February 2019).

What makes the March CPI interesting is the methodology used to calculate it during the coronavirus crisis. The Central Bureau of Statistics says it has completely ignored prices in some sectors when making its calculations such as travel abroad, cultural and sporting events. In April, analysts expect the CPI to fall by 0.5%, led by the sharp decline in fuel prices.

Published by Globes, Israel business news - www.globes-online.com - on April 14, 2020

© Copyright of Globes Publisher Itonut (1983) Ltd. 2020

Supermarket purchases  / Photo:  Cadya Levy, Globes
Supermarket purchases / Photo: Cadya Levy, Globes
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