Israeli Consumer Price Index rises 0.8%, almost double the forecast

By TZVI JOFFRE

Published: MAY 15, 2023 21:00

Updated: MAY 16, 2023 17:29

A CUSTOMER shops for groceries at a Rami Levy supermarket branch, in Jerusalem. (photo credit: YONATAN SINDEL/FLASH90) — A CUSTOMER shops for groceries at a Rami Levy supermarket branch, in Jerusalem.

(photo credit: YONATAN SINDEL/FLASH90)

A series of Israeli companies and importers have announced significant price hikes in recent weeks.

ISrael's Consumer Price Index rose 0.8% in April, nearly twice as high as the forecast, the Central Bureau of Statistics reported Monday. The year-over-year inflation rate remained steady at 5%, the same as in March, it said.

The CPI measures the monthly change in prices paid by consumers for a basket of goods and services purchased by the average household.

According to Investing.com, the CPI for April was expected to rise by 0.5%, and the year-over-year inflation rate was expected to fall to 4.7%. The CPI rose 0.4% in March.

April’s CPI increase was the highest since July 2022.

The CPI increase was driven mainly by price increases in guest and vacation housing, owned-dwellings services, clothing, chicken, private vehicles, restaurants and rent.

People shop for groceries at the Shufersal Deal supermarket in Katsrin, Golan Heights, on November 28, 2022. (credit: MICHAL GILADI/FLASH90)

The price of food products rose 0.4%, with significant increases for chicken, lamb, salty snacks, consommé, white flour, tehina, syrups, processed fish, rice, sugar, jams and tea.

The prices of soft drinks, prepared fish products, beer, vegetable salads, sauces, beef and ice cream decreased.The cost of housing rose 0.5% in April, compared with March. The statistics bureau attributed the increase to changes in rental prices in contracts signed between March and April, compared with contracts signed between February and March.

For new tenants, rental prices increased about 9%, while for tenants who renewed their existing rental contract, rental prices rose about 3.6%.

The combined clothing and footwear index rose 1.9%, with the clothing index rising 2.4% and the footwear index increasing 0.2%.

Among clothing items, the price of men’s and women’s swimsuits, children’s underwear and sleepwear, children’s and babies’ socks and outerwear rose in particular.

Bank of Israel expected to raise interest rate again

The Bank of Israel is set to make its next decision concerning interest rates on May 22, with the latest data likely to result in the central bank increasing the interest rate again.

The new data from the statistics bureau comes amid price rises by companies and importers, including Strauss, Osem, Diplomat, Mars and Schestowitz, which provide a wide range of the food, cosmetics and other products.