Israel inflation up 0.5% in February, rises faster than forecast

Consumer prices in Israel last month quickened faster than forecast amid robust economic growth rising 0.5% from 0.3% in January, led by price increases in food and housing costs.

The consumer price index (CPI), a measure of inflation that tracks the average cost of household goods, rose by 0.5% in February above analysts’ expectations of 0.3%, bringing annual inflation over the past 12 months to 5.2% down from 5.4% in January, according to data released by the Central Bureau of Statistics.

In February, increases were seen in the cost of fresh vegetables and fruits which rose 3.8%, culture and entertainment costs were up 0.9% and transportation rose 0.5%. Over the past year, rents on new contracts increased 7.5%.

Home prices continued to increase at a slower pace. Between December 2022 and January 2023 prices rose 0.1% compared with the November 2022 to December 2022 period. Over the past year home prices rose at a slower pace of 14.6%.