Inflation Hits 11-Year High


View of a construction site in Be’er Yaakov. (Yossi Aloni/Flash90)

Inflation in Israel over the past fiscal year was 4% – the highest since 2011, the Central Bureau of Statistics announced Sunday.

Meeting analysts’ expectations, the Consumer Price Index (CPI) rose 0.8% in April, but the figure did not meet the government’s target range of 1-3%.

The CPI was driven up by price hikes in fresh produce (5.5%), clothing (2.8%), transportation (2.8.%), and entertainment (1.5%)

Home prices rose by 16.3% rise in 12 months, while the Construction Inputs Index rose by 6.8% over the past fiscal year.

According to the CBS, the price hike was highest in central Israel – 18.5% on a year-on-year average – followed by Yerushalayim (16.7%), Tel Aviv (16%), Haifa (14.9%), and northern Israel (13.8%) and southern Israel (12.3%). The prices of new homes rose by 20.7% overall in the past 12 months.

Last week, the Finance Ministry pegged Israel’s fiscal deficit for the 12 months that ended in April at 0.6% of GDP.

Since the onset of 2022, Israel has recorded a fiscal surplus of NIS 31.4 billion, according to Globes.

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