Prices of apartments and the CPI rose by 1% in March-April 2019

by Ifi Reporter Category:Capital Market Jun 14, 2019

Prices of apartments rose by 0.5% in March-April 2019, compared with February-March 2019, according to the Central Bureau of Statistics (CBS) housing price index published by the Central Bureau of Statistics (CBS). Compared to the same period last year (March-April 2018) At the same time, the Central Bureau of Statistics published the Consumer Price Index (CPI), which recorded a sharp increase of 0.7% in May, 2019. In the last twelve months (from May 2018 to May 2019), the CPI rose by 1.5%, and since the beginning of the year (From January 2019) by 1.5%.
By district, the sharpest increases in housing prices were recorded in March-April in the Northern District - 2.9%, Tel Aviv - 0.2% and Haifa - 0.1%. On the other hand, declines were recorded in the Central District - 0.1%, and in the Southern District - 0.3%. A comparison of the transactions carried out in the current period compared to the same period last year shows that price increases were recorded mainly in the Northern Districts - 3.5%, South - 2.0% and Haifa - 1.7%. On the other hand, prices in the Tel Aviv and Tel Aviv Districts fell by 0.6% and 0.3% respectively.
The housing price index is a national index that includes new and second-hand dwellings, and is not part of the CPI. The index, which is published every month, also includes an amendment of the three preceding data, following transactions added after publication of the index. The February-March 2019 index was revised from a rise of 0.1% to 0.3%, and the January-February 2019 price index rose by 0.7%. This is after the index recorded slight declines every month in the previous six months. It can be concluded that most of the increase in this index is attributed to second-hand housing prices, which covered the decline in new dwellings.
The consumer price index rose by 0.7% in May 2019 - far above analysts' expectations, which were expected to be 0.45%. Housing prices also continue their journey northward, completing a 1% increase in the last 12 months.
In the last 12 months the CPI rose by 1.5%. This is a sharper increase than analysts expected, with Moody Shafrir of Mizrahi Bank and Jonathan Katz of Leidar expecting a 0.6% rise in the price of fresh fruits and vegetables. Price increases were recorded especially in fresh fruits, 10.2%, clothing and footwear 7.8%; And food, transportation and miscellaneous 0.6% each.
This is the fourth consecutive month that the index rose, after rising 0.1 percent in February, 0.5 percent in March and 0.3 percent in April. This followed three consecutive months of declines - 0.3% in November, 0.3% in December and 0.1% in January.
The most significant price increases were recorded in fruit, 10.2%, clothing and footwear - 7.8%, food, transport and miscellaneous - 0.6% each. Of the vegetables, peppers increased by 20.8%. The tomatoes, on the other hand, were down 6.3%.
Food prices were particularly high (6.8%), tea (4.1%), and sweets and chocolate (3.4%). Specially reduced: dough and frozen dough dough (5.6%), white flour (4.2%) and melted cheese (3.9%).
Expectations in the markets for the index of May prior to the publication of the CPI were as mentioned above, a rise of 0.45% (average figure), with some analysts expecting a more significant 0.6% rise, against expectations of a rise in the prices of vegetables and fruits.
 The April CPI was lower than expected and rose by 0.3% (with expectations for 0.5%), followed by the inflation rate in the last 12 months to 1.3%. Governor of the Bank of Israel Professor Amir Yaron clarified that an annual inflation rate of less than 2% will not prevent the Bank's monetary committee from raising interest rates if it believes that the conditions are ripe for this, but in view of expectations of a rate cut in the US and in most developed countries, The expected market expectations for yesterday were that the Bank's interest rate will be 0.34% at the end of the year (compared with 0.25% today).

 

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