Inflation Rate Dips, But Housing Prices Continue to Climb

By Aryeh Stern

In February, Israel’s Consumer Price Index (CPI) increased by 0.4%, meeting expectations. However, the annual inflation rate decreased to 2.5% from 2.6% at the end of January, according to data released this week by the Central Bureau of Statistics.

Several categories experienced price hikes last month, with fresh fruit seeing a significant rise of 10.7%. Footwear, entertainment and culture, home maintenance, furniture, household equipment, and transportation also saw increases ranging from 0.7% to 1.4%.

Conversely, clothing prices dropped by 2.5%, and apartment rental services decreased by 0.6%.

Additionally, the Central Bureau of Statistics reported changes in housing prices, which are not included in the general CPI, for the periods of November-December 2023 and December 2023-January 2024. On average, prices increased by 1.2%, marking the second consecutive month of growth after a prolonged period of decline. Regionally, prices surged by 1.4% in Yerushalayim, 1.5% in Haifa, and ranged from 1.1% to 1.8% in other areas. Prices of new homes saw an average rise of 0.4%.

However, when comparing December 2023-January 2024 to the preceding period, housing prices saw a 0.6% decrease. In this analysis, regions experienced varying trends, with some seeing increases while others saw declines. Notably, Tel Aviv witnessed a significant decrease of 4.4%, while the northern region saw a notable increase of 3.3%. The index of new home prices also saw a decline of 2.2%.