Israeli Election Season Sees Economic Perks Amidst Campaigning
Translated & summarized from Maariv by baba
Ten days before Israeli elections, the government is rolling out economic benefits, which critics call a "deception and distraction" tactic. Prime Minister Yair Lapid is addressing the cost of living, while credit card companies are in a heated competition. The September Consumer Price Index fell unexpectedly, but annual inflation rose slightly to 1.6%, with concerns over housing and food prices persisting. The Bank of Israel is expected to keep interest rates unchanged due to global economic pressures.
The story in 6 lines · by baba
- Israeli government distributes economic benefits ten days before elections, criticized as a distraction.
- Prime Minister Yair Lapid focuses on lowering the cost of living amidst campaign.
- Credit card companies engage in aggressive competition with new loyalty programs.
- September Consumer Price Index fell 0.5%, but annual inflation rose to 1.6%.
- Housing prices decreased by 0.6% in September.
- Bank of Israel unlikely to lower interest rates due to global economic factors.
With just ten days until the elections, the Israeli government is distributing economic benefits, a move criticized as a "deception and distraction" tactic. Prime Minister Yair Lapid is focusing on lowering the cost of living, while credit card companies are engaged in fierce competition. The Ministry of Housing and Construction has launched an initiative to help public housing residents settle their debts, offering up to a 50% debt write-off and payment plans until December 31st. The National Insurance Institute also announced an expansion of rehabilitation services for victims of hostile acts, investing NIS 28 million in facilities.
Analysts anticipate further "pampering" initiatives in areas like electricity, culture, and sports before the elections, potentially including aid for reservists or residents of northern Israel. There's also speculation about a new transportation project, though its launch might be delayed due to a previous "Play Dubai" incident affecting Minister Miri Regev. These measures, often funded by existing surpluses or reserves, are seen as politically motivated, aimed at distracting voters from the rising cost of living over the past four years.
Meanwhile, a fierce battle is unfolding among credit card companies, with "FLY CARD" by El Al and Isracard, "FLY ALL" by Cal, and Rami Levy's "Super Fly" club aggressively marketing their offers. Cal's "FLY ALL" is reportedly offering significant benefits and directly attacking competitors, marking a departure from the industry's usual reserved approach. This intense competition, particularly between Cal and El Al/Isracard, is described as a fight for significant financial gains and ego.
The September Consumer Price Index (CPI) unexpectedly fell by 0.5%, leading to a slight increase in the annual inflation rate to 1.6%. Housing prices also dropped by 0.6%. Economists attribute the negative index partly to seasonal factors and transportation costs, as well as government subsidies on gasoline. Despite the low inflation relative to global standards, concerns remain about rising rent, food, and gasoline prices. The Bank of Israel is unlikely to lower interest rates on October 21st, partly due to a recent rise in US inflation, which has also impacted global markets and the Israeli stock exchange.
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