Israel's Inflation Slows as Consumer Price Index Drops 0.5% in September
Translated & summarized from Now 14 by baba
Israel's inflation rate slowed in September as the Consumer Price Index dropped by 0.5%, bringing the annual inflation to 1.6%. While prices decreased in sectors like transportation and food, fresh produce and rent saw increases. Apartment purchase prices continued to fall, down 0.6% in July-August, but construction costs rose slightly.
The story in 5 lines · by baba
- Israel's Consumer Price Index fell by 0.5% in September, lowering annual inflation to 1.6%.
- Fresh produce prices increased by 6.6% in September, while transportation and entertainment costs decreased.
- New tenants faced a 5.3% rent increase, contrasting with a 0.6% drop in apartment purchase prices.
- Apartment prices have fallen 1.8% year-over-year across Israel.
- Construction input costs rose 0.1% in September, with labor costs up 5.3%.
Israel experienced a notable slowdown in inflation during September, with the Consumer Price Index (CPI) falling by 0.5%. This brought the annual inflation rate down to 1.6%, indicating a moderation in price increases across the economy. The Central Bureau of Statistics reported that significant price drops were observed in transportation, culture and entertainment, and food. However, fresh produce prices surged by 6.6%, and education services increased by 0.8%.
While the overall CPI decreased, the rental market presented a mixed picture. New tenants faced a substantial 5.3% rise in rent, and those renewing leases saw an average increase of 2.4%. This contrasts with a broader decline in apartment purchase prices, which fell by 0.6% in July-August compared to June-July. The Northern district saw the steepest drop in property values at 1.5%, followed by Tel Aviv and the Central district. Annually, apartment prices have decreased by 1.8% nationwide.
Despite the cooling inflation, construction input costs rose by 0.1% in September, contributing to a 3.6% annual increase, driven partly by a 5.3% rise in labor costs and a 3.1% increase in steel prices. In parallel, the producer price index for industry rose by 0.8% in September, influenced by higher prices for clothing, refined petroleum products, and metals.
Mentioned
