Israel’s annual inflation drops to five-year low — statistics bureau

Israel’s annual inflation retreated to a five-year low, led by seasonal declines in the costs of fresh fruit and vegetables, clothing, and petrol prices, data released by the Central Bureau of Statistics shows.

Annual inflation over the past 12 months decelerated to 1.6% from 1.9% in May. The rate is the lowest since May 2021 and is hovering around the middle of the government’s annual target range of 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, in June was little changed, compared to analysts’ expectations for a decline of 0.1% or no change.

In June, reductions were seen in the prices of fresh fruit and vegetables, which fell 5.2%, petrol dropped 3.1%, clothing and footwear were down 2.7%, and transportation costs retreated 0.7%. Expenses for travel abroad slipped 1.6%.

These were offset by increases in the cost of culture and entertainment, which rose by 1%, housing increased by 0.7%, and health by 0.6%.

Rents on renewal of real estate contracts jumped 2.6% in June, and rents on contracts for new tenants surged 6.6%.