Inflation continues to moderate and is approaching the Bank of Israel's target. Following the war and the depreciation of the shekel, inflation data slowed more sharply than forecasts.
The Consumer Price Index (CPI) will decline by 2023.0% in November 3 compared to October 2023. Over the past 12 months (November 2023 vs. November 2022), the Consumer Price Index (CPI) increased by 3.3 percent. This compares with 3.7%, a figure recorded last month. The moderation in the inflation rate is likely to cause the Bank of Israel to lower the interest rate in the upcoming decision.
The data also show that home prices continued to decline: the annual index of new home prices declined by 3.6 percent overall. New home prices declined by 0.4 percent.
There were notable price declines in fresh fruit, which declined by 4.8 percent, transportation, which declined by 1.2 percent, footwear, which declined by 1.0 percent, culture and entertainment, which declined by 0.6 percent, housing, which declined by 0.4 percent, and furniture and household equipment, which declined by 0.3 percent.
Basket of vegetables, photo: courtesy of Tamam Farm
There were notable price increases in fresh vegetables, which increased by 0.7 percent, and food, which increased by 0.5 percent. Change in housing market prices (not part of the consumer price index). A comparison of the prices of transactions carried out in September–October 2023 with the prices of transactions carried out in August–September 2023 shows that home prices remained unchanged.
A segmentation by districts showed the following price changes: Jerusalem (-2.2%), North (-1.4%), Haifa (-0.3%), Central (-0.1%), Tel Aviv (-0.5%), and South (-1.5%).
An annual comparison of the prices of transactions carried out in September–October 2023 compared with September–October 2022 found that the annual home price index declined by 1.3 percent. An annual breakdown by districts found price declines in the central (2.9%), southern (2.3%), Tel Aviv (2.2%), and northern (0.1%) districts. In contrast, price increases were found in Jerusalem: Jerusalem (3.3%) and Haifa (2.5%).
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