The general CPI has gone up by 2.1% since the beginning of 2012.
Last month saw an increase in the prices of fresh vegetables, transportation, communication, and gasoline – which reached an all-time high. Reductions were recorded in the prices of housing services, fresh fruit, education services, accommodation and vacations in Israel and abroad.
The fresh vegetable index went up 12.9%. Some vegetables recorded significant price hikes, including cabbage (47.1%), tomato (35.4%), beet (18.4%), carrot (12.6%), onion and pepper (12.3%), cucumber (11.3%), zucchini (9.9%), garlic (6.6%), eggplant (6.3%), lettuce (4.1%) and squash (2.2%). In August, tomato prices soared 27%.
On the other hand, some vegetables became cheaper. Potato prices dropped 5.6%, radish – 3.3%, cauliflower – 3.2%, and broccoli – 2.8%.
The fruit index recorded a 7.6% drop. The prices of several fruits were significantly reduced, including avocado (36.1%), apple (18.3%), peach (13%), lemon (12.8%) and pear (9.9%).
The prices of some fruits went up, including melon (39.7%), mango (9.5%), grapes (3.8%) and banana (3.7%).
Education stabilizes index
September's CPI was mostly affected by education prices. According to CBS figures, payments to public kindergartens plunged 75.5% between September 2011 and September 2012, likely due to the compulsory education law taking effect from the age of three.
In addition, fees and payments to primary and post-primary schools fell 3.3%. The drop in the education segment compensated for more than 0.3% of the CPI increase. On the other hand, payments to private kindergartens went up by 4.5%.
The prices of other food products, before price hikes planned by Israel's major food companies, recorded an average increase of 0.9% and were likely affected by the 1% VAT rise.
Products which recorded significant price hikes include chicken liver (11.1%), beer (5.2%), turkey and chicken breast (4.2%), meat and chicken substitutes (4%), frozen chicken (3/7%), fresh fish (3.7%), tahini (3.6%), bread (3.5%), fresh chicken (3.3%) and unfrozen pastries (3.2%).
Some products, on the other hand, recorded significant price reductions: Tea prices went down 2.9%, oil and halva – 2.8%, wine – 2.7%, vinegar and mustard – 2.6%, ready cakes – 2.2%, ice cream – 1.9%, rice – 1.7%, candy and chocolate – 1.7%, jam – 1.5%, non-carbonated soft drinks – 1.3%, and alcoholic beverages – 1%.
Rent prices up
The CBS figures also reveal that home maintenance prices went up 0.6% in September, and rent increased by 0.3%. The cost of building index remained unchanged, but has gone up by 2.9% since the beginning of the year.
Most analysts expected September's CPI to rise 0.4-0.5% and be affected by the VAT rise and the sharp increase in fuel prices.
The August CPI soared 1%, after the July index rose by just 0.1%. The June CPI fell 0.3%, while the May index remained unchanged.