Consumer Price Index in Israel Rises by 0.4% in July and Interest Rates Will Not Decrease

SadaNews Economy - The consumer price index increased by 0.4% in July, but the annual inflation rate dropped from 3.3% in June to 3.1%, according to the Israeli Central Bureau of Statistics announced today, Friday.

The increase in the price index is likely to lead the Bank of Israel to decide not to lower interest rates, which will be announced next week, as well as at the end of September, since the inflation rate remains above the upper limit of the inflation target, which is 3%, established by the Israeli government when approving the state budget.

The most significant price increases in July were recorded in transportation by 1.6%, culture and entertainment by 1.3%, and housing by 1.1%. In contrast, prices decreased in several categories, including clothing and footwear by 4.2%, fresh fruits and vegetables by 0.9%, and furniture and household appliances by 0.4%.

Moreover, housing prices recorded a decrease of 0.5% in May and June. New apartment prices fell by 1.5%. However, compared to the same period last year, it was found that apartment prices increased by 2.5%, while there was a 3.9% rise in the previous price index.

The average price of apartments was 2.27 million shekels in the second quarter of this year, while the average price was 2.35 million shekels in the first quarter.