The consumer price index in June was lower than expected and in fact, there was no change in the index in June (0%) compared to forecasts for an index of 0.2%-0.3%. This means that the rate of inflation in the 12 months ending in June dropped rapidly to 4.2%, compared to early forecasts of 4.4%.
In May, 2023, the consensus among Israeli economists was that the Israeli economy was headed for a slowdown in growth.
Notable price increases were recorded in June in the food (0.6%), health and education (0.4%), and culture and entertainment (0.2%) sectors. Notable price decreases were recorded in fresh fruits and vegetables (4.6%), clothing and footwear (3.0%), and furniture and home equipment (0.8%) sectors.
However, rents climbed in June by 3.9% for tenants who renewed a lease, and a whopping 9.8% for new tenants. On the other hand, apartment prices decreased by 0.3% in April-May, compared to March-April, and in total rose between April-May 2022 and April-May 2023 by 7.6%.
Segmented by districts, in April-May of this year the following price changes were recorded: Jerusalem (0.3%), the North (0.0%), Haifa (0.0%), Center (-0.1%), Tel Aviv (-1.1%), and the South (0.5%). The prices of new apartments decreased by 0.1%.
