Inflation in Israel hits highest rate for decade in 2021

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

Finance Minister Avigdor Liberman checks food prices at a Jerusalem supermarket. (photo credit: Courtesy)
Finance Minister Avigdor Liberman checks food prices at a Jerusalem supermarket.
(photo credit: Courtesy)

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.

HOUSING GOES up in the new neighborhood of Ramat Beit Shemesh Bet, 2019.  (credit: HADAS PARUSH/FLASH90)HOUSING GOES up in the new neighborhood of Ramat Beit Shemesh Bet, 2019. (credit: HADAS PARUSH/FLASH90)