Central Bureau of Statistics: Renting apartments prices Jumprd in June by 6.5%

The Central Bureau of Statistics seems to have internalized the audit, re-publishing a breakdown of the June rent index, which provides a more true picture of rising prices. According to CBS, the rental price index rose by only 0.4% on average in June, but for apartments in the sample that had a tenant turnover (2.5% of tenants) - the price jumped by an average of 6.5%. For 7.5% of tenants who renewed a contract, it was recorded Of about 3%, and for 90% of the sampled tenants, who are under an existing contract, there was no price increase at all of course.
 Rental prices are part of the consumer price index, which is published every month, and have considerable weight (about 25%) in the "basket" of products that affect the index - according to which inflation in Israel is measured.
The CBS explained that the rent index is based on a monthly sample of about 17,000 observations that are supposed to represent three population groups among tenants.
The first group is tenants who are under a contract, for whom of course the price did not change that month, the second group is tenants who renew a contract that has ended and the third group is the new tenants - who represent apartments in the sample where there was a tenant replacement - ie those who signed a new contract.
As mentioned, these groups do not uniformly affect the calculation of the index. This is because the first group, the one for which the price change will always be zero, constitutes 90% of the total samples. While the other groups, in which only it will be possible to see what is actually happening in the market, constitute only 10%.
According to the published data, the rate of increase in rent in the apartments in which a tenant was replaced increased from the previous month when it was 5% and now has risen to an average of 6.5%. For tenants who renewed a contract, this is also a jump - when in the previous month the price increase was 1% on average in June, it is no less than 3%.
According to data released today, Israel is beginning to "align" with the countries of the world - and in the country inflation is also raising its head, although in the meantime still relatively moderately. Although the June index rose by a significant 0.4%, annual inflation in Israel, which has now reached 4.4%, is still very low relative to most Western countries, where inflation is double the rate here.
According to the housing price index, which is measured separately from other consumer prices, from the comparison of the prices of transactions made in April 2022-May 2022 compared to the prices of transactions made in March 2022-April 2022, it was found that housing prices rose 1.4%, completing an increase of 15.9% Last year (April 2021-May 2021). Last month, the annual rate of increase in house prices was 15.4%.
The price index of residential construction inputs rose by 0.6% in June 2022. In the last 12 months (June 2022 compared to June 2021), the price index of residential construction inputs rose by a high rate of 6.6%, which is expected to lead to further price increases in the future.