Israel’s inflation up 0.6 pct in March, highest in nearly 2 years

Israel’s consumer price index (CPI), a major indicator of inflation, increased by 0.6 percent in March, according to a statement released on Wednesday by the state’s Central Bureau of Statistics.

This is the highest monthly inflation rate recorded in Israel since May 2019 when the figure was 0.7. In February, the inflation rate was 0.3 percent.

March’s figure was mainly due to increases in prices of clothing, culture and entertainment, transportation and furniture.

On the other hand, there have been declines in the prices of fresh fruits and vegetables.

Gad Lior, senior analyst for Yedioth Ahronoth daily newspaper, told Xinhua that the high CPI figure in March indicates high demand for products and services following the exit from the third full COVID-19 lockdown imposed in the country.

Israel’s annual inflation over the past 12 months increased by 0.2 percent, significantly far from the government target of one percent to three percent.

However, Israeli inflation since the beginning of 2021 has approached the target range, with an increase of 0.8 percent.

The Bureau also said in January-February, home prices in Israel increased by 0.3 percent compared with December 2020-January 2021. Over the past year, home prices rose by four percent.