Consumer price index rose in June by 0.4% - Accelerates the rate of inflation in Israel to 4.4%

The consumer price index rose in June, according to forecasts, by 0.4%. The rise in the index in June accelerates the rate of inflation in Israel and it now reached 4.4% - a record since March 2011.
The most significant price increases were recorded in transportation items, which increased by 2.4%, housing, which increased by 0.7%, culture and entertainment, which increased by 0.7%, and health, which increased by 0.6%. On the other hand, due to seasonality, there were significant price decreases in the vegetable and fruit sections, which decreased by 8.5% and clothing and footwear, which decreased by 3.4%.
After the slowdown in the rate of increase in housing prices (which is not part of the consumer price index) in March-April 2022, the rate of increase in housing prices returns to rise again in April-May 2022, rising by 1.4% during this period compared to March-April this year. In the previous figure published by the CBS for the March-April data, the monthly rate of increase was more moderate and reached only 0.9% - what appeared to be a slowdown in the rate of increase in housing prices, which dropped to 15.4% on an annual basis.
But now it means that the annual price increase reaches 15.9% (April-May 2022 compared to April-May 2021) - these data are in contrast to other indicators that indicated a slowdown in real estate, now it turns out that apartment prices continue to rise. In April-May 2022, and increased during this period by 1.4% compared to prices in March-April this year. The apartments, which dropped to 15.4% on an annual basis.
The central region leads the annual rate of increase in prices with 19.5%, followed by Tel Aviv (15.3%), Jerusalem (14.6%), Haifa (14.4%), South (14.2%) and North (12.8%).
Preliminary estimates by June analysts averaged 0.4%, which should have led to an annual inflation rate of 4.5 in the last 12 months.
According to forecasts by the Bank of Israel and the Ministry of Finance, the inflation rate will continue to be high until the end of the year and will reach almost 5% by the end of the year - but then it will start to ebb and by 2023 inflation will return to the Bank of Israel's target range of 1% -3%.
The rate of inflation in the world continues to beat forecasts. In the US, inflation reached a rate of 9.1% in June, a record 40-year high, despite the sharp rise in the Federal Reserve's interest rate. In the eurozone, inflation is also significantly higher, reaching 8.6% in June.