The CPI (Consumer Price Index) in Israel increased 0.9% in August 2024 compared to July 2024. This constitutes a rate of almost 11%. It was 108.8 points compared to 107.8 points in the previous month (base: average 2022 = 100.0 points), reported Israel’s Central Bureau of Statistics.
This may have influenced the Bank of Israel’s recent decision not to cut the interest rate.
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The CPI is a measure of inflation. The U.S. Bureau of Statistics defines CPI as a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. Indexes are available for the U.S. and various geographic areas. Average price data for select utility, automotive fuel, and food items are also available.
The CPI is calculated based on the prices of a representative basket of goods and services commonly purchased by consumers. Different items in the basket are weighted according to their importance in a typical consumer’s budget. The CPI is used by governments, businesses, and consumers to understand economic trends and make financial decisions.
In Israel in August the CPI excluding housing also increased by 0.9% and was 108.1 points, the CPI excluding energy increased 1.0% and was 108.7 points and the CPI excluding vegetables and fruit increased 0.7% and was 108.4 points.
The CPI excluding housing also increased by 0.9% and was 108.1 points, the CPI excluding energy increased 1.0% and was 108.7 points and the CPI excluding vegetables and fruit increased 0.7% and was 108.4 points.
Prices of the following groups increased in particular: fresh vegetables 13.2%, transport 2.8%, housing 0.6%, education, culture and entertainment 0.5%, dwelling maintenance 0.4% and food 0.3%.
Prices of the following groups decreased in particular: clothing and footwear 1.1%, communication 0.8% and furniture and household equipment 0.4%.
Since the start of the year the CPI and the CPI excluding housing increased 3.6%, each. The CPI excluding energy increased 3.5% and the CPI excluding vegetables and fruit increased 3.4%.
Over the past 12 months (August 2024 compared to August 2023) the CPI increased 3.6%, the CPI excluding housing increased 3.7%, the CPI excluding energy increased 3.5% and the CPI excluding vegetables and fruit increased 3.2%.
In August 2024 the seasonally adjusted CPI increased 0.7%, the seasonally adjusted CPI excluding housing and the seasonally adjusted CPI excluding vegetables, fruit and housing increased 0.8%, each.
Based on the trend data for the period May 2024 – August 2024, the annual pace of increase in the CPI and the annual pace of increase in the CPI excluding housing was 4.6%, each and the annual pace of increase in the CPI excluding vegetables, fruit and housing was 3.7%.
Major Changes in Primary Consumption Items
Food (excluding vegetables and fruit)
The food price index increased 0.3%.
The following increased in particular: baking and cake decorating products (3.5%), instant coffee (2.9%), turkey meat (2.8%), chocolate (2.7%), brined cheese (2.2%), beef, frozen (2.0%), ice cream (1.9%), salty snacks (1.7%), malt beer (1.7%), noodles, spaghetti, etc. (1.5%), soft drinks, non-carbonated (1.4%), meat (mutton) (1.2%) and sausage, pastrami and hot dogs (1.2%).
The following decreased in particular: chicken and turkey liver (3.9%), jam, honey and confiture (2.0%), chocolate spread, butterscotch spread and peanut butter (1.5%), dough and pastry products (frozen) (1.5%), white flour (1.3%), natural fruit juices (1.2%), chicken leg quarters (1.1%) and sugar substitutes (1.1%).
Vegetables and Fruit
The vegetables and fruit price index increased 6.2%.
The fresh vegetables price index increased 13.2%; in the contrast the fresh fruit price index decreased 0.2%. The dried, canned and frozen fruit price index increased 0.5%; in the contrast the frozen, pickled, and canned vegetables price index decreased 1.0%.
Among the fresh vegetables, the following increased in particular: tomatoes (37.3%), squash
(26.7%), cabbage (25.9%), cucumbers (18.7%), eggplant (15.5%), kohlrabi (14.4%), peppers (13.7%), broccoli (9.9%), fresh beans (7.2% compared to June 2024), potatoes and sweet potatoes (6.4%), cauliflower (6.2%), carrots (5.2%), beets (3.3%), corn on the cob (3.3%), radishes (2.6%), fennel (2.5%), onions, leeks, and scallions (2.5%), leaf vegetables (2.2%), garlic (2.1%) and lettuce (1.0%).
The following decreased in particular: pumpkin and butternut squash (3.2%) and sprouts (2.1%).
Among the fresh fruit, the following decreased in particular: peaches (9.3%), table grapes (6.5%), avocados (5.7%), plums (5.0%), mangos (2.0%) and pears (1.1%).
The following increased in particular: bananas (10.6%), sugar melons (9.7%), oranges (6.5%), watermelon (5.4%), pomegranates (2.4% compared to February 2024) and lemons (1.5%).
Among the processed vegetables and fruit, the following increased in particular: frozen potatoes (1.9%), olives (1.0%), peanuts (1.0%) and preserved and frozen fruit (1.0%).
The following decreased in particular: canned tomatoes and tomato puree (2.4%), pickled cucumbers (2.4%), other frozen vegetables (1.6%) and canned legumes and vegetables (1.2%).
Housing
The housing price index increased 0.6%.
The owned dwellings services index increased 0.7% and the rent index increased 0.5% and other housing expenditures (brokerage, contract, insurance etc.) increased 0.8%.
Owned Dwellings Services
The owned dwellings services index showed an increase 0.7% in August 2024 compared to July
2024. This increase reflects the changes in rental prices set in contracts signed in July 2024 – August 2024, compared to contracts signed in June 2024 – July 2024.
Rent
For tenants who renewed a contract, there was an increase of about 2.6%. For new tenants (apartments in the sample that had a tenant turnover), there was an increase of about 5.3% in the rent.
Dwelling Maintenance
The dwelling maintenance index increased 0.4%.
The following increased in particular: glazier service (1.2%), other cleaning materials (1.2%), gas, central installation (1.1%) and plumbing services (1.0%).
The following decreased in particular: dishwashing products (1.5%), housecleaning products (1.1%) and deodorizers (1.1%).
Furniture and Household Equipment
The furniture and household equipment price index decreased 0.4%.
The following decreased in particular: outdoor furniture (6.6%), tablecloths and napkins (5.4%), mirrors, clocks, and frames (3.4%), fan (2.2%), cooking and baking utensils (1.8%), tables (1.4%), plates (1.3%), lampshades, chandeliers and table lamps (1.3%) and mugs, cups, and glasses (1.2%).
The following increased in particular: chairs (2.6%), kitchen accessories (2.0%), other equipment for babies (1.0%), deep freezer (1.0%) and cutlery (1.0%).
Clothing and Footwear
The clothing and footwear index decreased 1.1%; the seasonally adjusted index decreased 0.4%.
The clothing index decreased 1.1% and the footwear index decreased 0.9%.
Among clothing item, the following decreased in particular: miscellaneous clothing such as hats and swimsuits (2.8%), outerwear (1.4%) and women ‘s underwear and sleepwear (1.3%).
The following increased in particular: men’s underwear (1.4%).
Among footwear item, the following decreased in particular: men ‘s footwear (1.7%) Health
The health index increased remained unchanged.
The following decreased in particular: glasses and associated optical products (3.0%) and dietary supplements (1.2%).
Education, Culture and Entertainment
The education, culture and entertainment price index increased 0.5%.
The education services index and culture and entertainment index increased also 0.5%, each.
The following increased in particular: tickets or subscription to sporting event (2.8%), holding celebrations (1.1%) and recreation, holidays and trips (1.0%).
The following decreased in particular: musical instruments (1.1%), art supplies (1.1%) and nonfiction books (1.0%).
Transport and Communication
The transport and communication index increased 2.4%.
The transport index increased 2.8% and the communication index decreased 0.8%.
The following increased in particular: travel abroad (22.1%), hauling services (7.8%), parking fees (1.4%), vehicle insurance (1.2%) and vehicle repairs and spare parts (1.0%).
The following decreased in particular: car rental for domestic travel (9.5%), internet services (3.3%) and vehicle fuel and lubricants (1.1%).
