Inflation reared its head once again in July owing to a surprisingly high 1.1% spike in the Consumer Price Index in July, putting Israel on track for the highest year-on-year rise in prices since 2008.
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The Central Bureau of Statistics published a host of other economic indicators indicating that at the current pace inflation could be as high as 5.2% in 2022, the fastest in well over a decade and almost double the 3% Bank of Israel forecast.
The CPI refers to the price of staple goods commonly found in Israeli households, as well as clothing, and transportation, but excludes several specific sectors.
The housing report that was also attached to the CBS indices revealed that homes hot more expensive by a whopping 17.8% rose (on an annualized basis), which is the sharpest increase in some 10 years. This is in part because housing prices rose by 2% in May and June alone.The latest economic report will most likely result in yet another interest rate hike being announced in the coming weeks, potentially making Israeli homeowners pay a higher monthly payment on their mortgage.
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