We will not innovate anything here by declaring that inflation in Israel is high, the economic burden is heavy and the cost of living is at its peak.
And despite the recent news that Israel is actually growing, Israeli consumers are feeling the heavy economic burden in all areas of consumption.
Tomorrow the Bank of Israel is expected to announce an interest rate increase.
This means that just before the students go back to school, and towards the upcoming Tishrei holidays, the people of Israel will feel the consequences in September.
Yonatan Katz, the chief economist of "Leader Capital Markets", told "Israel Hayom" that "inflation has started to rise, and we already have inflation of more than 5% at an annual rate. What affected the increase in inflation was the increase in rental prices, which was very fast In my opinion, every household that lives in a rental feels this very well in their pocket."
"Beyond that, the prices of housing for purchase, which are not included in the consumer price index, were measured and published. Here, contrary to all expectations, we see a slowdown, with an increase of 2% in the last months of May and June and 18% in the last year. This goes against the data, because there is a decrease in demand".
Katz commented on the expected interest rate increase tomorrow: "The expected interest rate increase will make it even more difficult for households to achieve the dream of buying an apartment. This is because the cost of financing will continue to increase. A significant part of the mortgages are at prime interest rates, so immediately if the interest rate increases by 0.5% , the prime interest rate will rise by at least 0.5%, after it has risen sharply by 1% since the beginning of the year.
The return continues to rise
"This has affected those who have already bought an apartment and need to finance the mortgage. If someone took out a mortgage a few months ago, and the prime interest rate was 1.5%, tomorrow it will be closer to 3.25%. This will immediately cause an addition of hundreds of shekels that goes from the household to the system Banking for the mortgage".
were we wrong
We will fix it!
If you found an error in the article, we would appreciate it if you shared it with us
