The Consumer Price Index remained unchanged in June 2023, indicating a significant decrease in the annual inflation rate, which dropped to 4.2%, according to the latest print issued by the Central Bureau of Statistics on Friday.
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These figures are better than expected, as forecasts predicted a slight increase of around 0.2%-0.3% and an annual inflation rate of 4.5%.
Prices of the following categories increased in particular: food 0.6%, health 0.4% and education, culture and entertainment 0.2%.
Prices of the following groups decreased in particular: fresh fruit and vegetables 4.6%, clothing and footwear 3.0% and furniture and household equipment 0.8%.
Meanwhile, the Bank of Israel announced this week, for the first time since April 2022, that it will not raise its benchmark interest rate and will remain at a level of 4.75%. However, the central bank stressed that further hikes may be possible and that current growth and inflation forecasts are based on the assumption of a compromise on the judicial reform issue.
Housing market continues to cool
Meanwhile, housing prices recorded a decrease of 0.3% in April-May compared to March-April, and dropped to an annual 7.6%. However, rent prices continue to surge, rising by 9.8% in June for apartments where the tenant was replaced.
Per district, the Jerusalem and southern districts saw housing prices climb a modest 0.3% and 0.5% compared to the month before, respectively, while prices remained unchanged in the Haifa and northern districts. Meanwhile, Tel Aviv and the Central District saw prices shrink by 1.1% and 0.1%, respectively.
Per district, the Jerusalem and southern districts saw housing prices climb 9.1% and 6.8% year-on-year, respectively, while prices in the Haifa and northern districts jumped 11% and 11.4%. Meanwhile, Tel Aviv and the Central District saw prices grow by 5.9% and 6.6%, respectively. Prices of new dwellings decreased 0.1% compared to last month but rose 8.8% year-on-year.
HOUSE PRICES DROP SLIGHTLY AS MILK TAX LAXED
(ILTV)
