Cost of consumer goods in Israel on the rise, report says

Central Bureau of Statistics says inflation still moderate at 4.1% compared to other countries, but housing prices surged 15.4% in the past year, along with mild increase in food, clothing, and entertainment costs

i24NEWS, Ynet|
Israel's cost of consumer goods rose by 0.6 percent in May and shows no signs of slowing down its pace, according to government data released Wednesday.
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  • According to the Central Bureau of Statistics (CBS) report, the consumer price index (CPI) was slightly less than most forecasts - predicting 0.7-0.8% - possibly reflecting successful efforts by the Bank of Israel to cool inflation.
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    People line with with shopping carts at supermarket
    (Photo: Yair Sagi)
    However, inflation for the past year was 4.1% higher than the bank's target range of 1-3%. The current interest rate is 0.75%, with plans for it to be reassessed next month.
    In Israel, the last time inflation was this high was in 2011, when annual inflation hit 4.4% in March of that year. Three years prior, inflation hit 5.4%.
    Inflation in Israel is still moderate compared to other countries, such as the United States, which hit a 40-year record high of 8.6% in recent weeks.
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    Inflation
    Inflation
    Inflation
    (Photo: Shutterstock)
    The increase in Israel during May was similar to April's, according to the CBS.
    In May, the cost of fresh fruit rose by 13.8% and fresh vegetables went down by 0.7%, with the cost of other foods increasing by 0.9%. Clothing and footwear went up 2.2%, while culture and entertainment costs were up 0.8%.
    Housing prices only went up 0.9% in May, marking a recent decrease in the rate of growth. However, the costs have surged 15.4% in the last year.
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