Analysts expected that the wave of price increases in May would lead to a sharp increase in the consumer price index by 0.6%, which should again push the annual inflation rate beyond the 1-3% corridor established by the Bank of Israel.
However, according to the Central Bureau of Statistics, the consumer price index rose by 0.2% in May. Thus, the inflation rate over the past 12 months remained unchanged at 2.8%.
The main reason for the “surprise” was a sharp decrease in the cost of holidays abroad (by 7.4%), which reduced the price index by 0.3% (a month ago, the same expense item added 0.5% to the price index for April).
A significant increase in prices in May was noted for fresh fruit (10.3%), as well as for food and recreation and entertainment (1%). Prices for fresh vegetables (-2.4%) and for transport (-1.7%) decreased noticeably.