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The Central Bureau of Statistics reported today that Israel’s Consumer Price Index (CPI) rose by 0.6% in July, exceeding market expectations and marking a continuation of the recent upward trend in inflation.
Over the past twelve months, the annual inflation rate has climbed to 3.2%, up from 2.9% at the end of June. This increase pushes inflation back above the upper limit of the Bank of Israel’s annual target range, which is set at 3%.
The rise in the CPI for July reflects significant increases in various sectors. Fresh fruit and vegetables saw a notable price surge of 3.2%, while culture and entertainment costs climbed by 1.8%.
Rents and housing maintenance both increased by 0.8%, with food and transport also seeing a rise of 0.5% each.
On the flip side, some categories experienced price declines. Clothing and footwear prices dropped by 2.4%, and furniture and household equipment saw a decrease of 0.6%.
Additionally, the Central Bureau of Statistics released data on home prices for the period between April-May 2024 and May-June 2024.
The average price of new apartments fell by 0.9% during this period. However, compared to the same months in 2023, the index for housing prices increased by 4.7%.
Regional price variations were evident, with significant increases recorded: 9.7% in Haifa, 6.3% in the northern region, 4% in Tel Aviv, 3.9% in the central region, 3.8% in Jerusalem, and 3.7% in the south.
The report also highlighted that this is the seventh consecutive month of rising prices after a period of declines.
In terms of regional price changes for July, Jerusalem saw an increase of 0.7%, the northern region experienced a rise of 1.5%, Haifa’s prices went up by 1.2%, the center saw a 0.6% rise, and Tel Aviv’s prices increased by 0.5%. The southern region had the smallest rise at 0.2%.
These inflationary pressures and regional price variations come as Israel continues to grapple with economic challenges.
The Central Bureau of Statistics’ latest figures indicate a complex economic landscape where certain sectors are experiencing price pressures while others see relief.
The Bank of Israel will likely need to address these developments to manage inflation effectively and maintain economic stability.
This article was created using automation technology and was thoroughly edited and fact-checked by one of our editorial staff members