March CPI reading lower than expected

Israel’s Consumer Price Index (CPI) rose 0.6% in March, the Central Bureau of Statistics reported this afternoon, below the economists’ expectation of 0.8%. Inflation over the past 12 months remains at 3.5%, still well above the Bank of Israel’s annual target range for inflation of between 1% and 3%.

Due to the sharp rise in commodity prices following the Russian invasion of Ukraine, earlier this week the Bank of Israel revised its inflation forecast for 2022 sharply upwards from 2% to 3.6%. The Bank of Israel sees 2% inflation in 2023.

Among the prominent rises in prices in March, clothing and footwear rose 4.6%, culture and entertainment rose 2.1%, and transport rose 1.6%. Among the prominent price falls in March, fresh fruit and vegetable prices fell 2.5%.

Housing prices rose 1.8% in January-February compared with December-January and have risen 15.2% over the past 12 months.

In January-February compared with December-January, housing prices in central Israel rose 2.4%, in Jerusalem (2.2%), Haifa (2.1%), northern Israel (1.6%), southern Israel (1.5%), and in Tel Aviv (1.3%).

Over the 12 months prior to January-February housing prices rose 17.7% in central Israel, in Jerusalem (16.4%), Tel Aviv (14.5%), Haifa (13.2%), southern Israel (12.5%) and northern Israel (11.5%).

Published by Globes, Israel business news – en.globes.co.il – on April 15, 2022.

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