November CPI surprises with 0.5% fall - Israel Business, Ynetnews

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Vegetable prices drop 12.8% in November Photo: Dudu Azoulay
Vegetable prices drop 12.8% in November Photo: Dudu Azoulay

November CPI surprises with 0.5% fall

Consumer price index beats moderate forecasts, recording relatively sharp decline due to reductions in prices of fresh vegetables and fuel. CPI up 1.4% since beginning of 2012

Yaron Druckman
Published: 12.15.12, 07:46 / Israel Business

While supermarkets report price hikes, numbers say differently: Israel's consumer price index, published by the Central Bureau of Statistics on Friday, points to a relatively sharp drop of 0.5% in November from October.


The CPI's decline was mostly affected by the drop in prices of fresh vegetables, vehicles' fuel and oil additives and housing services, which together contributed to a 0.4%.


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Hikes were recorded in the prices of bread, milk, clothing and car insurance. The prices of tomatoes were reduced by 23.4% after a significant price increase in recent months.


Among the fresh vegetables, the following recorded sharp price reductions: Cabbage (40.2%), tomatoes (23.4%), peppers (20%), beets (19.9%), zucchini (11.3%), eggplant (10.1%), fennel (5.7%), radish (5.7%), squash (4.5%), potatoes (4.4%), lettuce (3.1%) and carrot (2.4).


The price of onion, on the other hand, rose 6.3%, and the price of fresh mushrooms went up 1.6%. In total, fresh vegetable prices were reduced by 12.8%.


The fruit index recorded a 7% decline. The prices of the following fruits were significantly reduced: Kiwi (28.6%), bananas (23.2%), avocado (21%), persimmon (14.4%), melon (11.7%), oranges (10.6%), lemons (10.4%), grapefruit (9.6%), tangerines (3.8%) and apples (2.2%).


The prices of some fruits increased, including grapes (16.9%), plums (7.3%), mango (4.6%) and pears (1.3%).


Blow to pastry lovers

The food price index, which does not include fruits and vegetables, increased by 0.8%.


The following products recorded significant price hikes: Halva (7.8%), sausages (7.3%), frozen dough and pastries (4.5%), margarine (4.3%), eggs (3.6%), special bread (3.1%), vinegar, mustard and dressing (3.1%), mayonnaise (2.8%), cookies and biscuits (2.5%), noodles and spaghetti (2.3%) and frozen poultry (2.3%).


The prices of cake and baking products went up by 2.3%, soft drink prices rose 2.1%, cereal – 1.9%, wine – 1.9%, buns and bagels – 1.8%, salty snacks – 1.8%, soft white cheese – 1.8%, hard cheese – 1.8%, white flour – 1.6%, challah – 1.3%, minced meat – 1.2%, and fresh poultry – 1%.


The prices of turkey and chicken breast went down by 3.5%, fish prices dropped 2.6%, soup powder – 2.3%, chocolate – 1.5%, and Turkish coffee – 1.4%.


Rent prices rise 0.1%

In the housing market, rent prices increased by 0.1% and the cost of building index rose by 0.3%. Since the beginning of the year, the cost of building index has gone up by 3.2%.


The clothing and footwear index rose 3.7%. The prices of women's shoes went up by 1.5%, while the prices of men's shoes increased by 1.3%.


Public transportation and communication prices dropped 1.3%. Products and services which recorded significant price reductions include vehicles' fuel and oil additives (4.3%), trips abroad (2.6%), cellular phone services (2.4%) and transport services (1.4%).


How did previous indices do?

October's CPI fell 0.2% thanks to decline in the prices of housing services, fuel and fresh vegetables. The September CPI remained unchanged from August, despite a 13% increase in vegetables prices. The August CPI soared 1%.


Another high CPI was recorded in April, when prices went up by 0.9%. In addition to the September CPI, the indices of May, February and January remained unchanged too.


Since the beginning of the year, the consumer price index has increased by 1.4%.



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