The Home Price Index was flat and the index of new home prices rose slightly, by 0.9%, the Central Bureau of Statistics reported today. The figures are for the period April-May 2018 in comparison with March-April 2018. In comparison with the corresponding period last year, the Home Price Index fell 0.1%. The Consumer Price Index for June showed a rise of 0.1%.
In the breakdown by region, the Home Price Index shows a mixed picture. In Jerusalem, Tel Aviv, and the south, the index rose by 0.6%, 0.2%, and 0.9%. In the north, Haifa, and the central region, there were falls of 0.4%, 0.1%, and 0.7%.
After several successive falls, it seems that the Home Price Index has stabilized.
Meanwhile, after four years, inflation in Israel has returned to within the 1-3% target range. The rise in the CPI for June was only 0.1%, but the fact that the reading for May 2017, which was especially low, drops out of the calculation boosts the twelve-month inflation figure, as analysts expected. Most analysts see inflation continuing higher in the coming months, but say that this is a temporary phenomenon that does not justify an interest rate hike by the Bank of Israel.
Prices of fresh vegetables continued to rise steeply in June, by 7.5%. Fresh fruit prices on the other hand fell 3.2%. Clothing and footwear prices fell 6.4%.
Published by Globes [online], Israel business news - www.globes-online.com - on July 15, 2018
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