Israeli housing market takes a dip, consumer prices hold steady, inflation at 4.2%

Interest rate hikes seem to make a dent on persistent cost of living problem as Consumer Price Index unchanged in June, defying all predictions; Housing prices downtick 0.3% compared to last month but grew 7.6% year-on-year; rent prices surge 9.8%
Hila Tsion|
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.
<< Follow Ynetnews on Facebook | Twitter | Instagram | TikTok >>
More stories:
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%.
2 View gallery
(Photo: Avi Moalem, Gettyimages)
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.
2 View gallery
(Photo: Tzvika Tischler)
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.
The commenter agrees to the privacy policy of Ynet News and agrees not to submit comments that violate the terms of use, including incitement, libel and expressions that exceed the accepted norms of freedom of speech.