Israel's Inflation Rate Drops in September, But Annual Figure Rises
Translated & summarized from Maariv by baba
Israel's Consumer Price Index fell 0.5% in September, driven by lower travel and leisure costs, but the annual inflation rate rose to 1.6%. New renters saw a 5.3% increase in housing costs. Finance Minister Bezalel Smotrich highlighted Israel's strong economy. The monthly CPI decrease might influence the Bank of Israel's interest rate decisions.
The story in 5 lines · by baba
- Israel's Consumer Price Index decreased by 0.5% in September.
- The annual inflation rate in Israel rose to 1.6% in September.
- New renters faced a 5.3% increase in housing costs.
- Hotel and travel costs saw significant decreases in September.
- Finance Minister Bezalel Smotrich commented on Israel's economic strength.
Israel's Consumer Price Index (CPI) decreased by 0.5% in September, a figure that could potentially influence the Bank of Israel's decision on interest rates. However, the annual inflation rate climbed to 1.6% during the same period. The monthly decrease was largely driven by a drop in transportation and leisure costs, with hotel and accommodation prices falling by 14.2% and travel and flight expenses decreasing by 7.3%. These two categories alone accounted for approximately 0.47 percentage points of the overall index decline.
Despite the monthly drop, the annual inflation rate saw an increase. Within the CPI components, vegetable prices rose, while rents for new tenants increased significantly. New renters experienced a 5.3% jump in rent, compared to a 2.4% increase for those renewing their contracts. These figures reflect the change over a longer period rather than a single month, as rent prices are typically fixed by contract for extended durations.
Finance Minister Bezalel Smotrich stated that Israel's economy is among the best globally due to responsible management over the past four years, emphasizing the need for a strong Religious Zionism party in the upcoming elections to maintain economic strength. The data also indicated that after seasonal adjustments, the index remained unchanged. The article questions whether an interest rate cut is now closer.
