Israel's Consumer Price Index (CPI) rose 0.7% in February, the Central Bureau of Statistics reported this evening. This lifts inflation over the past 12 months to 3.5%, well above the Bank of Israel's annual target range for inflation of between 1% and 3%. Housing prices rose 2.1% in December-January compared with November-December and have risen 13% over the past 12 months.
February's CPI reading was above the analysts' expectations of between 0.5% and 0.6%. The impact of the Russian invasion of Ukraine is beginning to be felt, especially the rise in the price of oil on global markets, and expectations are that annual inflation will move above 4% next month.
Due to the rise in inflation, the Bank of Israel announced last month that it will gradually begin raising the interest rate from its historic low of 0.1%. The US Federal Reserve is expected to announce a rate hike this week.
Among the prominent price rises in February, fresh fruit and vegetable prices rose 5.3%, while transport rose 1.9%, home maintenance rose 1.1% and food rose 0.6%. Clothing prices fell 3.2% last month.
Published by Globes, Israel business news - en.globes.co.il - on March 15, 2022.
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