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Inflation in Israel hit highest rate for decade in 2021

Israel’s Consumer Price Index (CPI) rose unexpectedly by 0.3% in December 2021, the Central Bureau of Statistics reports, above the analysts’ expectations of 0.1-0.2%.

During 2021, the CPI rose by 2.8%, within the Bank of Israel’s target range for inflation of between 1% and 3%.

Inflation hit its highest rate for a decade in 2021, after negative inflation of 0.7% in 2020 due to the COVID crisis.

There were significant price rises in December in footwear and clothing (1.1%), housing costs (0.8%), furniture and household equipment (0.7%), and food (0.5%).

There were significant price falls in fresh fruit and vegetables (2.7%) and culture and entertainment (0.8%).

The housing prices index, which is separate from the CPI, continued to rise in the period October-November, in comparison with September-October, climbing by 1.4%.

Housing prices have risen 10.6% over the past 12 months, and by 18% since the start of 2019.

Source: Globes, Israel business news