Israeli Consumer Price Index (CPI) rose 0.6% in January, according to figures released by the Central Bureau of Statistics today. After CPI fell 0.3% and inflation reduced to 3.2% in December 2024, analysts predicted a rise of 0.5%-0.6%. Inflation is well above the Bank of Israel’s annual target range of 3%.
Estimates estimate that the January CPI was exceptional due to government tax hikes, and that the Bank of Israel will not panic to raise interest rates to combat inflation. In addition to VAT hiking and other tax increases from 17% to 18% at the start of January, there was also a rise in prices for electricity, water and local government taxes (Arnona).
The Central Bureau of Statistics has also announced changes to home prices (not part of the general CPI) between October 2024 and November 2024. On average, prices rose 0.4% after an increase of 0.6% the previous month. In regional breakdowns, prices fell 1.2% in Jerusalem, 1.2% in the north, 0.3% in Haifa and 0.1% in the centre, but rose 0.6% in Tel Aviv and 0.3% in the south. Prices for new apartments rose 0.7%.
In comparisons between November and December 2024 and November to November 2023, home price indicators increased by 7.3%. In regional breakdowns, prices rose 11.1% in Haifa, 9.4% in Tel Aviv, 9.2% in the north, 5.7% in the central region, 4.9% in the south and 3.1% in Jerusalem. Prices for new apartments have risen 4.4% over the past year.
Published by Globes, Israel Business News -en.globes.co.il- February 14, 2025.
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