Israel’s annual inflation picks up in February, led by travel costs

Israel’s annual inflation in February accelerated, led by increases in the costs of foreign travel and fresh fruit, according to data released by the Central Bureau of Statistics.

Annual inflation over the past 12 months advanced to two percent, from 1.8% in January, when it hit the lowest level since June 2021. The inflation rate is still within the government’s annual target range of between 1% and 3%.

On a monthly basis, the consumer price index (CPI), a measure of inflation that tracks the average cost of household goods, rose in February by 0.2%. Analysts’ expectations were split between no change and a 0.2% increase.

In February, notable increases were seen in the costs of fresh fruit, which were up 3.6%, entertainment and culture rose 0.8%, and housing and transportation costs 0.3% each. Expenses for travel abroad were up 2.3%.

Rents on renewal of contracts soared 2.7%, and rents on contracts for new tenants jumped 5.8%.

These were offset by declines in the prices of clothing, which fell 3.3%. The costs of fresh vegetables retreated 1.4%, and furniture and home equipment slipped by 0.2%.