CPI up 0.3% in April, well below expectations

price gun  photo: Tamar Matzafi

The Consumer Price Index has risen 1.1% since the start of 2021, while housing prices have risen 4.5% over the past year.

Israel's Consumer Price Index (CPI) rose 0.3% in April 2021, the Central Bureau of Statistics reports, well below the analysts' consensus of 0.6%. Since the start of 2021, the CPI has risen 1.1% and over the past 12 months, the CPI has risen 0.8%.

The relatively low inflation figure for April, strengthens the Bank of Israel's belief that inflation has stabilized at between 1% and 2.5% annually. According to the most recent statement by Bank of Israel Governor Amir Yaron, it would take a real 'jump' in inflation to change policy. It seems that the Bank of Israel was right and the 0.6% rise in the CPI in March was a temporary aberration.

There were significant price rises in April in fresh fruit and vegetables 3% and clothing and footwear (2.8%), and food (0.7%) and significant price falls in communications (1.2%).

The housing prices index, which is separate from the CPI, continued to rise in the period February-March, in comparison with January-February, climbing by 0.8%. Housing prices have risen 4.5% over the past 12 months.

During February-March compared with January-February, housing prices in in Central Israel rose 1.2%, in the north prices rose 1.1%, in the south prices rose 1%, in Tel Aviv 0.6%, in Haifa 0.2%, while prices fell in Jerusalem 0.3%.

Over the past 12 months prices have risen 6.6% in the south, 5.7% in the north, 5.3% in central Israel, 3.7% in Tel Aviv, 3.2% in Haifa, and 0.8% in Jerusalem.

Published by Globes, Israel business news - en.globes.co.il - on May 14, 2021

© Copyright of Globes Publisher Itonut (1983) Ltd. 2021

price gun  photo: Tamar Matzafi
price gun photo: Tamar Matzafi
Twitter Facebook Linkedin RSS Newsletters גלובס Israel Business Conference 2018