Inflation drops to target range

Inflation credit: Tali Bogdanovsky
Inflation credit: Tali Bogdanovsky

The CPI fell in December, bringing inflation in 2023 within the Bank of Israel's 1%-3% target range. Housing prices continue to fall.

Israel’s Consumer Price Index (CPI) fell by 0.1% in December, in line with expectations, the Central Bureau of Statistics reports. In the twelve months to the end of December 2023, the index rose by 3%, down from 3.3% from the 12 months to the end of November. Inflation in 2023 has thus returned to the upper limit of the Bank of Israel's 1%-3% target range,

There were notable price falls in December in fresh fruit, and culture and entertainment, which both fell 2.2%, fashion and footwear prices fell (1.8%), and furniture and household equipment prices fell (0.7%).

There were notable price rises in fresh vegetables, which rose 3.2% and housing costs, which rose 0.3%.

In 2023, fruit and vegetable prices rose 13.6%, and there were price rises in food (4.2%), transport and communications (3.8%), housing costs (3.5%), healthcare (3.2%), housing maintenance (2.6%), and education, entertainment and culture (1.8%)

In 2023 clothing and footwear prices fell 10.4% and there were price falls in furniture and household equipment (4.3%).

The Central Bureau of Statistics also released figures for home prices, which are not part of the CPI. A comparison of deal prices in September-October 2023 with deals in October-November 2023 shows prices falling 0.2%.

A comparison of deal prices in September-October 2023 with deals in October-November 2023 shows prices rose 1.6% in Jerusalem, but fell 0.1% in the north, fell 0.3% in Haifa, rose 0.2% in the Central Region, fell 1.2% in Tel Aviv, and fell 0.1% in the south.

In the 12 months ending October-November 2023, housing prices in Israel fell 1.8%. In the 12 months ending October-November 2023 housing prices in Tel Aviv fell 4.5%, in the Central Region prices fell 2.3%, housing prices in the south fell 0.5%. On the other hand, prices in Jerusalem rose 2.2%, in the north prices rose 0.8% and in Haifa prices rose 0.1%. Prices of new apartments over this 12 month period fell 3.9%.

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

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

Inflation credit: Tali Bogdanovsky
Inflation credit: Tali Bogdanovsky
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