Israel Inflation Slows Sharply, Housing Prices Decline Again
Translated & summarized from i24NEWS French by baba
Israel's inflation rate fell by 0.5% in September, exceeding expectations and bringing the annual rate to 1.6%. Housing prices also declined by 0.6% in July-August, with the northern region seeing the largest drop. However, rental costs continued to rise, increasing by 2.4% for renewals and 5.3% for new leases.
The story in 5 lines · by baba
- Israel's September inflation fell 0.5%, exceeding forecasts and reaching 1.6% annually.
- Housing prices decreased by 0.6% in July-August, with the north seeing the largest drop.
- International travel and hotel prices dropped significantly, contributing to lower inflation.
- Despite falling purchase prices, rents rose 2.4% for renewals and 5.3% for new tenants.
- The Bank of Israel's target inflation range is between 1% and 3%.
Inflation in Israel decreased more than anticipated in September, with the consumer price index falling by 0.5%, surpassing economists' predictions of a 0.3% to 0.4% drop. On an annual basis, inflation stands at 1.6%, within the Bank of Israel's target range of 1% to 3%. This slowdown was primarily driven by significant price reductions in international travel, hotels, and fuel. Declines were also observed in the culture, leisure, transportation, and apparel sectors. However, prices for fresh vegetables rose by 6.6%, educational services by 0.8%, and rents by 0.4%.
In the real estate market, housing prices fell by 0.6% in July-August compared to the preceding two months, reversing a trend of slight increases. New housing prices dropped by 0.4%, or 0.8% excluding subsidized transactions. Regional disparities persist, with the northern region experiencing the steepest decline at 1.5%, followed by Tel Aviv at 0.9% and the central region at 0.7%. Jerusalem and the southern region also saw price decreases. Annually, national housing prices are down 1.8%.
Despite the drop in purchase prices, renters have not seen relief. Official figures indicate that rents increased by 2.4% for lease renewals and by 5.3% for new tenants.
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