Israel’s Consumer Price Index rose 0.7% in August compared with July, although annual inflation remained considerably lower at 1.5% over the past 12 months, according to new figures from the Central Bureau of Statistics.

Some of the sharpest increases were recorded in fresh vegetables, which rose 2.9%, transportation, which climbed 2.7%, and culture and entertainment, which increased 2%. Housing costs rose 0.6%. At the same time, several everyday categories became cheaper: food prices fell 0.5%, fresh fruit dropped 2%, clothing declined 0.8%, and furniture and household equipment fell 0.3%.

Renters faced additional pressure. Tenants renewing existing leases saw rents increase by approximately 2.6%, while new tenants moving into apartments where the renter had changed faced increases of 4.4%. The Central Bureau of Statistics noted that the figures approximate annual changes for those groups, since rent generally remains unchanged during the term of a lease.

Another dramatic increase appeared in Israel’s industrial output price index, which rose 2.7% in August, driven largely by a 28.3% surge in prices for refined petroleum products. Excluding fuels, the industrial index increased by just 0.2%.

The data also showed mixed trends in the service sector during the second quarter. Cleaning services rose 3.6%, accounting services increased 3.3%, employment services climbed 2.4%, and advertising services rose 2%. By contrast, computer programming and related consulting services fell 3.3%, publishing services declined 1.5%, and legal services dropped 0.2%.

(YWN World Headquarters – NYC)