November CPI fell further than expected

Israel’s Consumer Price Index (CPI) fell 0.4% in November, more than expected with analysts predicting a 0.2%-0.3% fall, after the CPI rose 0.5% in October. In the twelve months to the end of November 2024, the rate of inflation fell to 3.4%, from 3.5% at the end of October, according to figures released by the Central Bureau of Statistics today. Although annual inflation at the end of November was below the economists forecast of 3.6%-3.5%, it still remains above the Bank of Israel’s annual target range upper limit of 3%.

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Prominent price falls in November included fresh fruit and vegetables, which fell 6.6%, transport fell 1.5%, education, culture and entertainment fell 1.3%, and footwear fell 0.7%.

Prominent price rises in November included clothing, which rose 1.2%, and fuel and food and housing maintenance, which each rose 0.3%.

The Central Bureau of Statistics has also published the change in home prices (which are not part of the general CPI) between August-September 2024 and September-October 2024. On average, prices rose 0.5%, after declining 0.1% the previous month, but rising for the nine consecutive months before that. In the breakdown by region, prices fell by 0.4% in Jerusalem, but rose 1.5% in the north, and fell by 0.2% in Haifa, rose 0.4% in the center, rose 1% in Tel Aviv, and rose 0.4% in the south. Prices of new apartments rose 0.3%.

In the comparison between September-October 2024 and September-October 2023, the index of housing prices rose 6.7%. In the breakdown by region, prices rose by 11.1% in Haifa, 9.5% in the north, 7.7% in the central region, 5.9% in Tel Aviv, 5.2% in the south, and just 1.7% in Jerusalem. Prices of new apartments have risen by 3.6% over the past year.

Published by Globes, Israel business news – en.globes.co.il – on December 15, 2024

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