The index: -0.4% • Clothing and footwear were reduced by more than 6%, fruits and vegetables increased by 3% • In annual terms, prices rose only 0.3% - below the lower threshold set by the Bank of Israel (1%) • To purchase an apartment it is necessary At 103 salaries

• House prices rise // Photo: Yehoshua Yosef

The consumer price index in January 2020 was negative, falling 0.4%. This is similar to the same month's indices in recent years. That's how the Central Bureau of Statistics released this weekend.

According to the data, significant price declines were recorded in apparel and footwear items - 6.4%, in culture and entertainment (0.8%) and a minimal decrease in food prices of 0.5%. On the other hand, vegetables and fruits increased by 3.1%. In the last 12 months, the CPI rose by 0.3% - below the lower level of the Bank of Israel's inflation target, which was set at 1%.

The real estate bubble is inflating

Comparing real estate transaction prices in November 2019 through December of that year, compared to October-November 2019 prices, it turned out that although house prices had fallen by two-tenths of a percentage, they had risen by 3%.

It should be noted that housing prices in Israel, which are also published by the Central Bureau of Statistics, are not included in the calculation of the index, although they are published together with the index's data and cost of living.

In the segmentation of housing price changes by districts in November-December 2019, compared with October-November of that year, those in the north and central fell by a minimal rate of 0.4%, in Jerusalem and Tel Aviv by 0.2%, in the Haifa district, real estate prices rose by 0.7% while in the south unchanged.

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Increase in housing prices in the periphery

However, compared with November-December in the year preceding it (2018), house prices were rising in all districts. The most prominent of the increases were in the Tel Aviv District - 5.7%, in the north - 3.8% and in Haifa (less than 2%).

The new housing prices index found that prices had climbed 0.5% in November-December compared to October-November. Compared to 2018, the prices of new apartments fell by 3%. The national average price of a home purchase transaction was NIS 1,530,900 in the fourth quarter of 2019. That's no less than 103 average monthly salaries.