CPI fell unexpectedly 0.3% in May, home prices up

Shoping during the coronavirus  / Photo: Cadya Levy

Analysts had predicted that the Consumer Price Index would rise in May. Home prices continue to rise, despite the coronavirus crisis.

Israel's Consumer Price Index (CPI) unexpectedly fell 0.3% in May, the Central Bureau of Statistics reported this evening. This figure was far lower than expected with analysts forecasting that the May CPI would be unchanged or rise by up to 0.2%. However, it should be taken into account that calculating the CPI is fraught with problems with major sectors of the economy partially working or not working at all because of the coronavirus crisis.

Since the start of 2020, the CPI has fallen by 0.7% and over the past 12 months it has fallen by 1.6%.

Notable price declines in May included fresh vegetables (1.5%), food (0.9%) and household furniture and equipment (0.5%). Notable price rises included fresh fruit (5.2%).

Housing prices continue to climb, even though the latest figures are the first to apply to the coronavirus period. Housing prices rose by 0.1% in March-April from February-March and have risen 3.5% over the past 12 months.

Published by Globes, Israel business news - en.globes.co.il - on June 15, 2020

© Copyright of Globes Publisher Itonut (1983) Ltd. 2020

Shoping during the coronavirus  / Photo: Cadya Levy
Shoping during the coronavirus / Photo: Cadya Levy
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