Inflation in Israel Passes 5%

Inflation for the 12-month period through October 31 increased to 5.1% from 4.6% in the 12-month period ending on August 31.

According to the Central Bureau of Statistics, the Consumer Price Index in Israel increased by 0.6% in October, surpassing analysts’ expectations.

The cost of fresh fruit and vegetables rose by 4.1% in October, while the price of clothing and footwear increased by 4%, food by 1%, transportation by 0.6% and home maintenance by 0.4%.

Meanwhile, Israel’s economic growth slowed in the third quarter as consumer spending fell, but high inflation is still expected to prompt another significant Bank of Israel rate hike next week, reported Reuters.

According to central bank estimates, Israel’s economy grew more than 8% in 2021 and is expected to grow 6% in 2022 before slowing to 3% next year.