Israeli inflation quickened at faster-than-expected pace during April

Israeli inflation in April quickened at a faster pace than forecast, led by an increase in the costs of foreign travel and entertainment, along with housing and clothing, data released by the Central Bureau of Statistics shows.

Annual inflation over the past 12 months accelerated to 3.6 percent, up from 3.3% in March, and 3.4% in February. 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, increased by 1.1% in April, above analysts’ expectations of about 0.6% to 0.7%. That’s after the CPI monthly figure in March rose by 0.5%.

In April, fast increases were seen in the costs of transportation, which were up 4.9%, culture and entertainment edged up 1.6%, and clothing and fresh fruit each jumped 1.5%, according to the statistics bureau. The cost of foreign and domestic travel in April soared 15.9%. Housing prices rose 0.6%.

These were offset by notable declines in the price of fresh vegetables, which fell 1%. Furniture and home equipment prices were down 0.5%.

Rents on renewal of contracts rose 2.7% in April, and rents on contracts for new tenants went up 4.7%.