May CPI reading below expectations

Inflation Photo: Shutterstock
Inflation Photo: Shutterstock

The Consumer Price Index rose 0.6% last month and has risen 4.1% over the past 12 months, while housing prices in Israel have climbed 15.4%.

Israel's Consumer Price Index (CPI) rose 0.6% in May, the Central Bureau of Statistics reported this evening, below the economists' expectations of 0.7%-0.8%, while Goldman Sachs had even predicted a rise of above 1%. Even so inflation remains at its highest level in Israel for more than a decade. Inflation over the past 12 months is now 4.1%, still well above the Bank of Israel's annual target range for inflation of between 1% and 3%, and this is likely to result in the Bank of Israel again hiking interest rates at the start of next month.

Among the prominent rises in prices in May, fresh fruit rose 13.8% and clothing and footwear rose 2.2%, food rose 0.9%, and culture and entertainment rose 0.8%. Among the prominent price falls in May, fresh vegetables fell 0.7%.

Housing prices rose 0.9% in March-April compared with February-March and have risen 15.4% over the past 12 months, down from 16% last month.

In March-April compared with February-March, housing prices in Tel Aviv rose 1.6%, in southern Israel 1.1%, in central Israel 1%, in Haifa 0.9%, and in northern Israel 0.8%. In Jerusalem prices fell 1.1%. Over the 12 months prior to January-February housing prices rose 17.7% in central Israel, in Jerusalem (16.4%), Tel Aviv (14.5%), Haifa (13.2%), southern Israel (12.5%) and northern Israel (11.5%).

Published by Globes, Israel business news - en.globes.co.il - on June 15, 2022.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2022.

Inflation Photo: Shutterstock
Inflation Photo: Shutterstock
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