Are you sure he lied here? Record spending on credit cards in July Israel today

Cost of living?

Price increases?

Data from the SBA company, which manages the national credit card payment system, indicate that the spending of the Israeli public using credit cards continued to break records even during the month of July 2022.

In July, credit card transactions totaling more than NIS 38.697 billion were recorded in the SBA systems - an all-time record in the Israeli economy - an increase of 6.6% compared to July last year.

It can be assumed that the main reason for the rather sharp increase in credit expenses lies precisely in the increase in prices.

On top of that, traditionally household expenses are higher in the months of July-August because of the long vacation.

However, even excluding the increase in prices, the volume of household expenses increased slightly, despite the complaints about the cost of living.

We will explain: the inflation recorded in the last year reached 4.4% (the price index until June), and even after we add to that the index for the month of July which will be published next week and which is expected to increase by 0.7%, we will accept that we spent a little more even in neutralizing the increase in the index.

In the summer they spend more

The Sheba company says that most of the increase in expenses was recorded in the tourism, restaurants, culture and fuel industries.

Adi Yufa, a trendologist and expert on business futures, explains in a conversation with "Israel Today" that "Israelis live in the moment. The mode of accumulation is: drink and eat now because you will know what will happen tomorrow. This consumption behavior demonstrates how much we live the here and now at the expense of what May be in the future.

"Despite the high cost of living, Israelis buy more. They want to take advantage of what comes to mind now, so we see a strengthening in the fields of tourism, restaurants and culture. The strengthening of online consumption is a product of the same situation. There is an unlimited abundance and it is easy to obtain, and it completely serves this trend ".

The amount of daily spending on credit cards reached more than NIS 1.248 billion in July.

The previous daily spending record was recorded in June 2022 and was NIS 1.225 billion.

Daily expenses in July were 1.9% higher than in June.

The data also shows that Israelis also increased their spending in online transactions by 8.7% compared to July last year.

The monthly expenditure in online transactions reached a total of NIS 22.227 billion in July, an all-time high.

In July 2021, the amount of expenses in online transactions was NIS 20.454 billion.

In contrast, expenses in physical transactions in the businesses themselves increased in July by only 4% compared to June.

Ronit Tishler Pitti, Vice President of Operations and Partner Relations at Sheba, explained in a conversation with "Israel Hayom" that "Traditionally, the months of July-August are a peak for credit card spending. We continue to see that spending in online transactions continues to grow at a higher rate than spending in physical transactions Physically, and this is thanks to the expansion of online trading activity in the entire Israeli economy, so many prefer to buy online."

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