Israel's inflation drops to lowest since January 2022

Israel's year-on-year 12-month inflation decreased to 3.3 per cent in July, the lowest rate since January last year, according to data released by the country's Central Bureau of Statistics.

The 12-month figure soared to 5.4 per cent in January 2023, the highest in over 14 years, but has since gradually declined, Xinhua news agency reported citing the bureau data.

A gradual increase of the base interest rate by Israel's central bank, from 0.1 per cent in April 2022 to 4.75 per cent in May 2023, helped curb inflation.

Accordingly, the bank decided in July to keep the interest rate unchanged, after 10 consecutive raises.

On a monthly basis, Israel's consumer price index rose by 0.3 per cent in July compared to June, with the prices of fresh fruits and vegetables recording a 3.4 per cent increase.

Home prices in Israel decreased in May-June by 0.2 pe rcent compared to April-May.

This was the third consecutive decrease after rising for nearly three years.

Annually, Israel's home prices in May-June 2023 increased by 5.2 per cent compared to the same months in 2022, the lowest annual increase in 2.5 years.