May Inflation Fell, but Many Households Still Felt Higher Prices at the Store

Israel’s Consumer Price Index fell 0.3% in May, and annual inflation eased to 1.9%, but the broader picture was far less comforting for shoppers. The Central Bureau of Statistics said the index stood at 104.8 points, using 2024 as the base year, and that prices have risen 1.2% since the start of the year. The main drag on the index was a 16.9% drop in travel abroad, while the basket many households actually buy, food, fruit, housing-related items, leisure and local vacation services, often became more expensive.

Several items that matter in everyday life rose in May, including fresh fruit up 6.7%, hotels and guesthouses up 4.9%, clothing up 1.9%, and owner-occupied housing services up 0.8%. Within food, the official category excluding fruit and vegetables was unchanged overall, but that masked sharp movement inside the basket. Chicken liver and turkey, prepared and frozen meat substitutes, cookies, some chicken and turkey cuts, cheese, pasta, oils, mayonnaise, long-life milk and milk substitutes all fell, while spices, frozen beef, ground beef, canned fish, wine, turkey, jams, soft drinks, black coffee, soup powders, sugar substitutes and chocolate rose.

The Retail Research Institute’s sample of influential packaged goods also showed a 1.40% average increase in dry grocery products, excluding animal products and fruit and vegetables. In fruit and vegetables, the CBS reported a 0.1% rise overall, but fresh fruit climbed 6.7% while fresh vegetables fell 4.9%; the institute’s smaller market basket, which includes promotions and market days, showed a 3.20% drop. The article argues that the gap between the official index and each household’s own shopping basket explains why many Israelis may not have felt any relief at the checkout.