Inflation in Israel rises back above target range of 3%

Israel's Consumer Price Index (CPI) rose 0.6% in July, slightly above expectations. In the twelve months to the end of July 2024, the rate of inflation has risen to 3.2% from 2.9% at the end of June, according to figures released by the Central Bureau of Statistics today. Thus inflation has risen back above the Bank of Israel's annual target range upper limit of 3%.

Prominent price rises in July included fresh fruit and vegetables, which rose 3.2%, culture and entertainment, which rose by 1.8%, rents and housing maintenance, which rose 0.8% each, and food and transport, which rose 0.5% each.

Prominent price declines in July included clothing and footwear, which fell 2.4%, and furniture and household equipment, which fell 0.6%.

The Central Bureau of Statistics has also published the change in home prices (which are not part of the general CPI) between April-May 2024 and May-June 2024.

Average price rises

On average, prices rose 0.7%. This was the seventh consecutive month that prices have risen after many months of declines.

In the breakdown by region, prices rose by 0.7% in Jerusalem, by 1.5% in the north, and by 1.2% in Haifa, 0.6% in the center, and 0.5% in Tel Aviv, and by 0.2% in the south. Prices of new apartments fell 0.9%.

In the comparison between May-June 2024 and May-June 2023, the index of housing prices rose 4.7%.

In the breakdown by region, prices rose by 9.7% in Haifa, 6.3% in the north, 4% in Tel Aviv, 3.9% in the central region, 3.8% in Jerusalem and 3.7% in the south. The index of new home prices fell 0.6%.