Consumer prices rose faster than expected last month in Israel, driven by a strong economy. The Consumer Price Index (CPI), which measures the average cost of household goods, increased by 0.5% in February, surpassing analysts’ expectations of 0.3%. This rise in prices was largely due to increases in the cost of food and housing.

Data released by the Central Bureau of Statistics showed that annual inflation over the past 12 months stood at 5.2%, slightly lower than the 5.4% recorded in January. In February, prices for fresh vegetables and fruits increased by 3.8%, while culture and entertainment costs rose by 0.9% and transportation costs increased by 0.5%. New contract rents increased by 7.5% over the past year.

Although home prices continued to increase, the rate of increase slowed down compared to the previous month. Between December 2022 and January 2023, home prices increased by 0.1%, a slower pace than the 0.2% increase observed between November 2022 and December 2022. Over the past year, home prices rose by 14.6%, also at a slower pace.

(YWN Israel Desk – Jerusalem)