CPI up 0.5% in October as housing prices fall

Inflation remains above the Bank of Israel's annual target range, while housing prices fell after nine consecutive months of rises.

Israel’s Consumer Price Index (CPI) rose 0.5% in October, as expected, after falling 0.2% in September. In the twelve months to the end of October 2024, the rate of inflation remains 3.5%, the same as at the end of September, according to figures released by the Central Bureau of Statistics today. Since the start of 2024, the CPI has risen by 3.9%. Thus inflation still remains well above the Bank of Israel's annual target range upper limit of 3%.

Prominent price rises in October included travel abroad, which rose 17.2%, footwear, which rose 2%, clothing, which rose 4%, car insurance, which rose 0.9%, and transport, which rose 1.9%.

Prominent price declines in October included hotels, which fell 4.2%, and fuel and oil for vehicles, which fell 1.8%.

The Central Bureau of Statistics has also published the change in home prices (which are not part of the general CPI) between July-August 2024 and August-September 2024. On average, prices fell 0.1%. This was the first decline after nine consecutive months that prices rose. In the breakdown by region, prices fell by 0.7% in Jerusalem, but rose 1.2% in the north, rose by 0.9% in Haifa, fell 0.7% in the center, and fell 0.1% in Tel Aviv, and rose 0.4% in the south. Prices of new apartments rose 0.1%.

In the comparison between August-September 2024 and August-September 2023, the index of housing prices rose 6.1%. In the breakdown by region, prices rose by 10.8% in Haifa, 7.2% in the central region, 6.6% in the north, 6.3% in the south, 4.7% in Jerusalem, and 3.8% in Tel Aviv. Prices of new apartments have risen by 3% over the past year.

Published by Globes, Israel business news - en.globes.co.il - on November 15, 2024.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2024.