Israel’s Consumer Price Index (CPI) hit a 14-year high last month, with an annualized rate 5.2% higher than in the same period last year, the Central Bureau of Statistics (CBS) reported on Monday.

The CPI, a measure of inflation based on the changing cost of household goods, increased by an unexpected 1.1% from June to July 2022 alone, according to CBS data.

The overall inflation rate is well above the upper range of 3% previously predicted by the Bank of Israel.

The CBS on Monday also released its newest housing figures, showing that prices climbed 17.8% in May-June 2022 compared to the same period last year, the highest annualized increase in a decade.

The Bank of Israel will reportedly raise its benchmark interest rate by at least 0.5% to 1.75% in an effort to tamp down consumer spending and cool the real estate market.

Israel’s inflation rate remains lower than those of the United Kingdom (9.4%), United States (8.5%) and Germany (7.5%).

A recent survey by the Israel Democracy Institute found that 44% of Israelis will vote in the upcoming Nov. 1 elections for the political party they believe has the best economic plan for curbing the rising cost of living.


Jewish News Syndicate

With geographic, political and social divides growing wider, high-quality reporting and informed analysis are more important than ever to keep people connected.

Our ability to cover the most important issues in Israel and throughout the Jewish world—without the standard media bias—depends on the support of committed readers.

If you appreciate the value of our news service and recognize how JNS stands out among the competition, please click on the link and make a one-time or monthly contribution.

We appreciate your support.