Israeli Consumers Hit With Higher Inflation
September 17, 2024
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Israel's Central Bureau of Statistics issued a report on Monday showing a sharp rise in inflation and the associated Consumer Price Index (CPI) which tracks the cost of household necessities. Mizrahi Tefahot Bank chief strategist Yonnie Fanning responded to the report by commenting that the CPI index is “unusually high, from a historical point of view, which pushes inflation far above the target range of the Bank of Israel. The effects of the war on the economy in general and the CPI index in particular continue to be evident.”
Some of the price increases were seen in items such as fresh vegetables and milk products. But the prices of things like airline tickets, housing and entertainment also rose. Howeer, the prices of some items fell, including clothes and footware, along with refined hydrocarbons.
The report also projected a continued rise in housing prices as the chronic shortage in apartments and houses is unlikely to be relieved soon as a shortage of workers in the construction industry means a slowdown in the rate of new contruction.
Also weighing heavily on the economic outlook is the ongoing battle over the state budget, with sharp disagreements among governing ministries and enormous expenditures needed for the war effort.