Consumer prices accelerate at expected rate, inflation at 2.9%, data shows

Consumer prices in Israel quickened in June, led by an increase in housing prices, and culture and entertainment costs, data released by the Central Bureau of Statistics showed on Monday.

The consumer price index (CPI), a measure of inflation that tracks the average cost of household goods, increased by 0.1 percent in June in line with analysts’ expectations of between 0% and 0.1%. That’s after the May CPI monthly figure of 0.2%

The June print brings annual inflation over the past 12 months to 2.9%, up from 2.8% in May and 2.5% in February. The government’s annual target range of inflation is between 1% and 3%.

In June price increases were seen in the cost of culture and entertainment, which were up 1.2%, housing prices edged up 0.5%, and food prices rose 0.3% according to the statistics bureau. These were offset by notable declines in the price of fresh vegetables and fruits, which fell 2.5%, and transport and communication costs declined 0.4%.

In the real estate market, rents on renewal of contracts rose 2.2% in June, and rents on contracts for new tenants went up 4.2%.