CPI up 0.3% in July, but high interest rate helps keep annual inflation in check

15 August 2023, 6:46 pm

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The consumer price index rose by 0.3% in July, but annual inflation has significantly dropped from 4.2% last month to just 3.3%, according to figures released by the Central Bureau of Statistics.

Prices of fruits and vegetables have risen by 3.4% and transportation prices have risen by 0.7%, while clothing and shoe prices have dropped by 4.8% and furniture prices dropped by 1.2%.

Housing prices have dropped by 0.2% relative to April and May, with the price of new apartments down by 0.6%.

The Bank of Israel has sharply raised the interest rate — from 0.1% to 4.75% — over the past 16 months to battle mounting inflation.