Inflation in Israel up to 3.3% in June as foreign travel costs soar

Israeli inflation in June accelerated, led by increases in the costs of foreign travel, food and fresh vegetables, as well as housing prices, according to data released by the Central Bureau of Statistics.

Annual inflation over the past 12 months increased to 3.3 percent, up from 3.1 percent in May. The government’s annual target range of inflation is between 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 in June by 0.3%, versus analysts’ expectations of an increase of about 0.2%. That’s after the CPI monthly figure in May declined by 0.3%.

In June, increases were seen in the costs of culture and entertainment, which increased by 1.1%, food and fresh vegetable prices were both up 0.7%, and housing rose 0.5%.

Foreign travel costs edged up 4.5% and hotel stays rose 8.1% as dozens of airlines canceled services to Israel amid the war with Iran.

These were offset by notable declines in the prices of clothing, which fell 4.5%, fresh fruit was down 2.5%, and furniture and home equipment retreated 0.4%.

Rents on renewal of contracts rose 2.4% in June, and rents on contracts for new tenants jumped 5.9%.