Israel’s Consumer Price Index (CPI) reading for June was far lower than expected. The index had been expected to show a rise of 0.2%-0.3%, but in the event it was unchanged. The annual rate of inflation fell to 4.2% from 4.5% and is expected to fall even further in the coming months.
Prominent price increases in June included food, which rose by 0.6%, healthcare which rose by 0.4% and education, culture and entertainment, which rose by 0.2%.
Prominent price decreases in June include fresh fruit and vegetables, which fell by 4.6%, clothing and footwear, which fell by 3% and furniture and household equipment, which fell by 0.8%.
A worrying item was that the residential rents item rose by 0.5%.
The Home Price Index shows that in April-May 2023 prices of new and secondhand homes fell by 0.3% in comparison with March-April 2023. In the breakdown by region, prices rose in Jerusalem and were unchanged in the north and Haifa. Housing prices fell by 0.1% in Tel Aviv, fell 1.1% in the center, and 0.5% in the south.
The Home Price Index was up 7.6% in April-May 2023 in comparison with April-May 2022. The index of new home prices rose by 8.8% in that period.
Published by Globes, Israel business news - en.globes.co.il - on July 14, 2023.
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