June CPI up 0.1% as housing prices jump again

Inflation remains within the Bank of Israel’s annual target range, the Central Bureau of Statistics reports.

Israel’s Consumer Price Index (CPI) rose 0.1% in June, in line with expectations. In the twelve months to the end of June 2024, the rate of inflation has risen slightly to 2.9% from 2.8% at the end of May, according to figures released by the Central Bureau of Statistics today. Thus inflation remains just below the Bank of Israel’s annual target range upper limit of 3%.

Prominent price rises in June included culture and entertainment, which rose by 1.2%, housing costs (rent) up 0.5%, and food prices and housing maintenance, which rose 0.3% each.

Prominent price declines in May included fresh fruit and vegetables, which fell 2.5% transport and communications, which each fell 0.4%, furniture and household equipment, which fell 0.3% and healthcare, which fell 0.2%.

The Central Bureau of Statistics has also published the change in home prices (which are not part of the general CPI) between March-April 2024 and April-May 2024. On average, prices rose 0.8%. This was the sixth consecutive month that prices have risen after many months of declines. In the breakdown by region, prices rose by 2.1% in Jerusalem, by 0.6% in the north, and by 0.7% in Haifa. Prices were unchanged in the center, rose 1.2% in Tel Aviv, and by 0.2% in the south. Prices of new apartments fell 0.5%.

In the comparison between April-May 2024 and April-May 2023, the index of housing prices rose 3.4%. In the breakdown by region, prices rose by 8.3% in Haifa, 4.9% in the north, 3.6% in the south, 2.9% in Jerusalem, 2.3% in the central region, and 2.6% in Tel Aviv. The index of new home prices fell 0.9%.

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