Israel's Consumer Price Index rose by 0.1% in February, the Central Bureau of Statistics announced today,bringing inflation in the twelve months to the end of February to 1.2%, which is within the government's target range of 1-3%. There were notable rises in prices of fresh fruit (7.4%) and furniture and home equipment (0.6%). The clothing and footwear item fell 4.3%.
Analysts had expected the February CPI reading to be a fall of 0.1%, similar to the reading for January, although that too was higher than expected, so that for two months in succession inflation has exceeded market estimates.
The home prices index comparing prices of transactions in December-January with prices in November-December was unchanged. The fall in home prices in the twelve months to the end of January thus reaches 0.7%.
Sources close to Minister of Finance Moshe Kahlon noted with satisfaction that the previous home prices index reading had been revised downwards, to a fall of 0.1% from a rise of 0.2% announced originally. This means that the index did not rise for any measured period in the six months to the end of January.
Kahlon said, "The trend in clear beyond doubt: home prices are declining. The goal we set for ourselves four years ago to bring down home prices for the first time in a decade has been achieved. In the coming years we shall continue this trend and strengthen the Buyer Price program and long term rental so that every young couple will be able to buy or rent a home at a fair price."
Published by Globes, Israel business news - en.globes.co.il - on March 15, 2019
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