August inflation rate increases faster than expected, data shows

Israeli inflation in August quickened at a faster pace than forecast, led by an increase in the costs of fresh vegetables, transportation and housing, data by the Central Bureau of Statistics shows.

Annual inflation over the past 12 months accelerated to 3.6 percent up from 3.2% in July, and 2.9% in June, and is for the second month above the government’s target range of 1% to 3%.

On a monthly basis, the consumer price index (CPI), a measure of inflation that tracks the average cost of household goods, rose by 0.9% in August, above the average range of analysts’ expectations of between 0.5% and 0.6%.

In August, price increases were seen in the costs of fresh vegetables, which jumped 13.2%, transportation was up 2.8%, housing rose 0.6%, and culture and entertainment edged up 0.5%, according to the statistics bureau. These were offset by price declines of 4.1% in the cost of clothing products and a 5.9% drop in refined petroleum products.

In the real estate market, rents on renewal of contracts rose 2.6% and rents on contracts for new tenants increased 5.3%.