Consumer prices in Israel accelerated faster than expected in April, data shows

Consumer prices in Israel in April accelerated at a faster pace than forecast, led by an increase in transportation costs and housing prices, data released by the Central Bureau of Statistics shows.

The consumer price index (CPI), a measure of inflation that tracks the average cost of household goods, rose 0.8% in April above analysts’ expectations of between 0.5% to 0.6%. The figure is up from the March CPI monthly reading of 0.6%.

The April print brings annual inflation over the past 12 months to 2.8%, up from 2.7% in March, and 2.5% in February. The government’s annual target range of inflation is between 1% to 3%.

In April, price increases were seen in the cost of transportation, which was up 3.4%, clothing and footwear rose 2.3%, culture and entertainment increased 1.6%, and housing prices edged up 0.6%, according to the statistics bureau. These were offset by declines in the cost of fruit and vegetables, which dropped 1.3%, and furniture and home equipment costs, which slipped 0.5%.

Rents on renewal of contracts jumped 2.3% in April and rents on contracts for new tenants soared 2.2%, the statistics bureau said.