Economy · Full coverage
New Study Reveals True Cost of Living by Including Interest Rates
How 3 Israeli newsrooms covered this story — translated into English and compared side by side.
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By יובל לקח
First reported by Mako · 2 hours ago
What happened
A new study by Israel's Taub Center reveals that the Consumer Price Index (CPI) underestimates the true cost of living by excluding interest expenses, particularly mortgage rates. A supplementary index including financing costs showed household expenses rising nearly fivefold compared to the CPI during peak interest rate hikes.
- 01CPI excludes interest costs, underestimating true cost of living.
- 02Supplementary index shows expenses rose nearly fivefold in 2023.
- 03Housing costs, including mortgages, are a major household expense.
- 04Rising interest rates significantly impact household budgets.
- 05Study suggests CPI may not reflect actual purchasing power erosion.
Summary translated & synthesized from the sources below by baba. Read each original for the full report.
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