Israel: Cost of consumer goods up 4.1% in past year

i24NEWS

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People shop for groceries at the Mahane Yehuda Market in Jerusalem, on October 30, 2020.
Olivier Fitoussi/Flash90People shop for groceries at the Mahane Yehuda Market in Jerusalem, on October 30, 2020.

Inflation in Israel is still moderate compared to other countries, such as the US

Israel's cost of consumer goods rose by 0.6 percent in May, according to data released by the Central Bureau of Statistics on Wednesday. 

The consumer price index (CPI) was slightly less than most forecasts - predicting 0.7-0.8 percent - possibly reflecting successful efforts by the Bank of Israel to cool inflation. 

However, inflation for the past year was 4.1 percent higher than the bank's target range of 1-3 percent. The current interest rate is 0.75 percent, with plans for it to be reassessed next month. 

In Israel, the last time inflation was this high was in 2011, when annual inflation hit 4.4 percent in March. Three years before, inflation hit 5.4 percent.

Inflation in Israel is still moderate compared to other countries, such as the US, which hit a 40-year record high of 8.6 percent.  

The increase in Israel during May was similar to April's, according to the Central Bureau of Statistics. 

In May, the cost of fresh fruit rose by 13.8 percent and fresh vegetables went down by 0.7 percent, with the cost of other foods increasing by 0.9 percent. Clothing and footwear went up 2.2 percent, while culture and entertainment costs were up 0.8 percent. 

Housing prices only went up 0.9 percent in May, marking a recent decrease in the rate of growth. However, the costs have surged 15.4 percent in the last year. 

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