Consumer Prices Fall in November, Housing More Expensive

Consumer prices in Israel fell 0.4% in November over the level a month earlier, the Central Bureau of Statistics announced. Economists had predicted a fall in prices in November, but the 0.4% was at the extreme end of all predictions. November is generally considered a “cheap” month, as many Israelis remain in the country (instead of traveling abroad), and many retailers discount heavily. The annual inflation rate for consumer prices is now 0.3%.

The fall was due to seasonal decreases in many areas. Fruit and vegetable prices sank 4.2%, shoes were 2.1% cheaper, and transportation cost 1.1% less than a month earlier. Also cheaper was furniture and home furnishings, by 0.9%.

With that, apartment prices – which are calculated separately from consumer prices – rose 0.6% in November, with annual costs for homes rising 2.6%. Home prices rose in the Tel Aviv area by 1.2% and in Yerushalayim by 0.1%. In the Haifa region, prices were down 0.4% in November over prices a month earlier.