CPI up 0.5% in October as housing prices fall

Israel’s Consumer Price Index (CPI) rose 0.5% in October, as expected, after falling 0.2% in September. In the twelve months to the end of October 2024, the rate of inflation remains 3.5%, the same as at the end of September, according to figures released by the Central Bureau of Statistics today. Since the start of 2024, the CPI has risen by 3.9%. Thus inflation still remains well above the Bank of Israel's annual target range upper limit of 3%.

Prominent price rises in October included travel abroad, which rose 17.2%, footwear, which rose 2%, clothing, which rose 4%, car insurance, which rose 0.9%, and transport, which rose 1.9%.

Prominent price declines in October included hotels, which fell 4.2%, and fuel and oil for vehicles, which fell 1.8%.

The Central Bureau of Statistics has also published the change in home prices (which are not part of the general CPI) between July-August 2024 and August-September 2024. On average, prices fell 0.1%. This was the first decline after nine consecutive months that prices rose. In the breakdown by region, prices fell by 0.7% in Jerusalem, but rose 1.2% in the north, rose by 0.9% in Haifa, fell 0.7% in the center, and fell 0.1% in Tel Aviv, and rose 0.4% in the south. Prices of new apartments rose 0.1%.

In the comparison between August-September 2024 and August-September 2023, the index of housing prices rose 6.1%. In the breakdown by region, prices rose by 10.8% in Haifa, 7.2% in the central region, 6.6% in the north, 6.3% in the south, 4.7% in Jerusalem, and 3.8% in Tel Aviv. Prices of new apartments have risen by 3% over the past year.

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

CPI up 0.5% in October as housing prices fall

Inflation remains above the Bank of Israel's annual target range, while housing prices fell after nine consecutive months of rises.