August CPI reading far above expectations

Inflation credit: Tali Bogdanovsky
Inflation credit: Tali Bogdanovsky

Annual inflation in Israel has jumped to 3.6%, while housing prices also continue to rise sharply.

Israel’s Consumer Price Index (CPI) rose 0.9% in August, far above analysts' expectations of 0.5%-0.6%. In the twelve months to the end of August 2024, the rate of inflation has risen to 3.6% from 3.2% at the end of July, according to figures released by the Central Bureau of Statistics today. Thus inflation has risen further above the Bank of Israel's annual target range upper limit of 3%.

Prominent price rises in August included fresh vegetables, which rose 13.2%, transport rose 2.8%, housing costs rose 0.6%, education, culture and entertainment rose 0.5% each, housing maintenance rose 0.4%, and food rose 0.3%.

Prominent price declines in August included clothing and footwear, which fell 1.1%, communications fell 0.8% and furniture and household equipment, which fell 0.4%.

The Central Bureau of Statistics has also published the change in home prices (which are not part of the general CPI) between May-June 2024 and June-July 2024. On average, prices rose 0.9%. This was the eighth consecutive month that prices have risen, after many months of declines before that. In the breakdown by region, prices rose by 0.1% in Jerusalem, and fell 0.2% in the north, but rose by 0.8% in Haifa, 1.8% in the center, and 1% in Tel Aviv, and by 0.4% in the south. Prices of new apartments rose 1.2%.

In the comparison between June-July 2024 and June-July 2023, the index of housing prices rose 5.8%. In the breakdown by region, prices rose by 9% in Haifa, 7.6% in the central region, 5.8% in Jerusalem, 5.6% in the north, 4% in the south and 3.6% in Tel Aviv. Prices of new apartments rose by 0.9% over the past year.

Published by Globes, Israel business news - en.globes.co.il - on September 15, 2024.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2024.

Inflation credit: Tali Bogdanovsky
Inflation credit: Tali Bogdanovsky
Tamar gas rig  credit: Albatross Azerbaijan's SOCAR set to sign Israel gas exploration agreement

In a strategic move, SOCAR is teaming with BP and Yitzhak Tshuva's NewMed Energy to search for gas in Israel's economic waters.

Armis founders Nadir Izrael, Yevgeny Dibrov  credit: Armis Armis buys Otorio in $120m deal

Otorio's technology secures heavy industry and critical infrastructure against cyber attack.

Orbit OceanTRx4 Mil satellite communications system credit: Orbit Orbit wins European satellite communications deal

The Israeli company will supply a European integrator with an OceanTRx4 Mil satellite communications system for a naval military platform.

Bank of Israel credit: Shutterstock Israel's forex reserves jumped in February

Israel’s foreign exchange reserves at the end of February 2025 rose to $220.253 billion, an increase of $4.185 billion from their level at the end of January, the Bank of Israel reports.

Metis founders CEO Roee Kriger and CTO Itay Braun credit: Metis Dynatrace acquires Israeli software co Metis

Tel Aviv-based Metis has developed a solution that enables software developers to own, troubleshoot, remediate, and control cloud-native databases and prevent related production issues.

Tel Aviv light rail credit: Yossi Cohen Proximity to Tel Aviv Red Line pushes up housing prices

A study commissioned by NTA has found that real estate along the Red Line has risen well above the overall average rise in prices.

Ben Gurion airport Terminal 1 credit: Shutterstock Terminal 1 to reopen in last week of March

Ben Gurion airport's Terminal 1 is important for airlines wanting to cut operating costs because it charges lower taxes than Terminal 3.

Gali Baharav-Miara and Yariv Levin credit Marc Israel Sellem Jerusalem Post and Yoav Dudkavich Yediot Ahronot Justice Minister begins process to oust Attorney General

Yariv Levin claims that Gali Baharav-Miara acts as the "long-arm of the government's opponents."

monday.com co-CEOs eran Zinman and Roy Mann credit: Netanel Tobias Fake anti-Israel ads target tech co in London

The advertisements on London Underground Victoria Line railway carriages cited examples of monday.com's projects as genocide and ethnic cleansing.

Beny Steinmetz credit: Reuters Denis Balibouse Greek Supreme Court frees Israel's Benny Steinmetz

Greece's top court has quashed a lower court's ruling to deport Steinmetz to Romania.

Leviathan platform  credit: Albatross State royalties on natural resources reach new peak

At NIS 2.37 billion, royalties from natural gas and minerals in 2024 were 8.2% higher than in 2023.

Haifa Port  credit: Shlomi Yosef How Trump tariffs could benefit Israel

Israel's free trade agreement with the US makes it an attractive investment destination for companies seeking to preserve access to the US market.

Grain team credit: Roei Shor Israeli forex optimization co Grain raises $33m

Grain’s technology optimizes foreign exchange for cross-border transactions, automatically mitigating currency fluctuation risks while sourcing pricing opportunities to drive higher sales conversions for its customers.

Selina hotel in Tel Aviv credit: Inbal Marmari Hospitality chain Selina Israel files for liquidation

The company has NIS 1.5 million in unpaid commitments and a NIS 32 million loan.

Bank Hapoalim branch  credit: Aviv Gottlieb Bank Hapoalim raising NIS 3b

The bank is offering two series of CoCo bonds, one of which is for 25 years, and 12-month commercial paper.

Google Haifa offices credit: Shutterstock Google Israel hiring dozens of engineers to develop AI chip

Google is expanding its chip development operations in Israel to develop a network interface card communication chip.

Twitter Facebook Linkedin RSS Newsletters גלובס Israel Business Conference 2018