rental price index increased by only 0.5% on average in the month of October

Against the background of the increase in apartment prices that still does not stop, the Central Bureau of Statistics continues to publish separately the breakdown of rental prices for the sixth month in a row. According to the data published Tuesday, the rental price index increased by only 0.5% on average in the month of October, but for apartments in the sample where there was a change of tenant (3% of the tenants) - an increase of approximately 6.2% was recorded in the monthly rent. For 7% of the tenants who renewed a contract, an increase of 3.7% was recorded, and for 90% of the sampled tenants, who are under an existing contract, there was no increase in price of course.
Rental prices are part of the Consumer Price Index, which is published every month, and have a considerable weight (about 25%) in the "basket" of products that affect the index - by which inflation in Israel is measured.
Over the years there has been much criticism of these figures, which many claim do not reflect the real situation in the market, and are biased downwards for all sorts of reasons. This criticism has been exacerbated in recent months, during which many tenants testified about rent price increases of tens of percent.
In response to the criticism, as mentioned, the CBS published for the first time six months ago, together with the monthly index notice, details and explanations regarding how the change in rental prices is calculated. The rent index is based every month on a sample of approximately 17 thousand observations that should represent three population groups among the apartment renters .
The first group is tenants who are under contract, for whom of course the price did not change that month, the second group is tenants who renew an expired contract and the third group is the new tenants - who represent apartments in the sample where there was a change of tenant - that is, those who signed a new contract.