Inflation in Israel has slowed to a five-year low, apartment prices have fallen

The prices for fresh vegetables and fruits fell the most in June – by 5.2%, clothing and footwear – by 2.7%, and transport – by 0.7%. At the same time, other products rose in price by 0.4%, and housing costs also increased by 0.7%.

The separate apartment price index, which is not included in the consumer price index, decreased by 1% over the month and by 2% over the year. This does not contradict the increase in housing costs recorded in the CSB report, which mainly reflects rental costs, while the apartment price index shows changes in the prices of residential purchase and sale transactions.

The Marker notes that slowing inflation increases the likelihood of a new interest rate cut by the Bank of Israel in September.