September Inflation Rate Rises to 1.6% Amid Falling Housing Prices
Translated & summarized from Ynet by baba
Israel's consumer price index fell 0.5% in September, but the annual inflation rate rose to 1.6% due to a lower index in the previous year. Economists expect the Bank of Israel to hold interest rates steady at its next meeting. Housing prices decreased by 0.6% in August compared to July, and by 1.8% year-over-year, with all districts showing price drops.
The story in 5 lines · by baba
- Israel's annual inflation rate increased to 1.6% in September, despite a monthly CPI drop of 0.5%.
- Economists anticipate the Bank of Israel will not lower interest rates at its next meeting.
- Housing prices in Israel decreased by 0.6% in August compared to July.
- Year-over-year, housing prices have fallen by 1.8% across all Israeli districts.
- Rent prices increased by 0.4% overall, with new renters facing a 5.3% rise.
Israel's consumer price index (CPI) fell by 0.5% in September, exceeding expectations of a 0.3% decrease. Despite the monthly drop, the annual inflation rate climbed to 1.6%. This increase is attributed to a more significant negative index recorded in September of the previous year, which was -0.6%.
Economists widely predict that the Bank of Israel will not lower interest rates for the fourth consecutive time at its upcoming meeting next Wednesday, due to the current inflation trend. Notable price decreases were observed in culture and entertainment (2.7%), transportation (2.5%), clothing and footwear (0.9%), and food and home furnishings (0.4% each).
Conversely, prices rose for fresh vegetables (6.6%), education services (0.8%), and rent, which increased by 0.4%. For renters renewing contracts, rent rose by 2.4%, while new renters saw a 5.3% increase. The Central Bureau of Statistics also released its housing price index, showing a 0.6% decrease in August compared to July. Year-over-year, housing prices have fallen by 1.8%.
Price decreases were recorded across all districts in the year-over-year comparison: the Center (2.7%), Tel Aviv (1.9%), South (1.5%), Haifa (1.4%), North (0.8%), and Jerusalem (0.2%). New housing prices saw a 0.4% decrease year-over-year. The proportion of new housing transactions under government subsidy increased from 40.0% to 45.8%. Excluding subsidized deals, new housing prices dropped by 0.8%.
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