Inflation in Israel is not easing: the country's Consumer Price Index (CPI) rose by 0.8% in April 2023, the Central Bureau of Statistics announced this evenig. Analysts had predicted a rise of only between 0.4% and 0.5%, which would have seen annual inflation fall to 4.6-4.7% but instead, in the past 12 months the CPI has risen by 5%, unchanged from last month.
There were notable price rises in April in fresh fruit and vegetables (4%), transport (2.5%), clothing and footwear (1.9%), culture and entertainment (1.8%), and housing costs (0.5%), and food (0.4%).
There were notable price falls last month in household maintenance products (0.5%) and furniture and household equipment (0.2%).
Changes in home prices are published at the same time as the CPI but are not included in it. In February-March 2023 housing prices were unchanged in comparison with January-February 2023, and have risen 11% in comparison with February-March 2022.
The higher than expected CPI reading will affect next week's Bank of Israel interest rate decision. Even before the April CPI was reported analysts predicted a 70% likelihood of the Bank of Israel hiking the rate at its next meeting in its efforts to curb inflation.
Published by Globes, Israel business news - en.globes.co.il - on May 15, 2023.
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