Israel

Inflation Soars Higher Than Expected

Monday, August 15, 2022 4:13 pm | < 1 Minute Read

By Hamodia Staff

Cleaning products for sale at a supermarket in Yerushalayim. (Yonatan Sindel/Flash90)

YERUSHALAYIM – The rate of inflation in Israel rose much higher in the past month than economists had forecasted.

The Consumer Price Index (CPI) reached1.1% in July, the Central Bureau of Statistics reported on Monday night, far exceeding expectations of between 0.5% and 0.7%.

That puts inflation over the past 12 months at 5.2%, well above the Bank of Israel’s annual target range for inflation of between 1% and 3%, and the highest level in Israel for over a decade.

Leading the price rises in July was fresh fruit, which rose 8.5%, transport (3.3%), and housing costs (1.2%). On the other hand, clothing and footwear prices fell 4% in July.

Housing prices rose 2% in May-June compared with April-May and have risen 17.8% over the past 12 months, up from 15.9% last month, the CBS said. In May-June compared with April-May, housing prices in Yerushalayim rose 3%, in the north 2.6%, Haifa (2.3%), Tel Aviv (2%),central Israel (1.7%), and the South (1%).

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