Israel’s Customer Cost Index (CPI) was the same in January. In the twelve months to the end of January, the rate of inflation was up to 2.6% from 3% in 2023. The decrease remains in line with experts’ expectations that the yearly inflation rate would be up to 2.6-2.7% in January.
.(* )The clothes and shoes product and the home entertainment and culture product both fell by 1.0% last month. Fresh fruit and vegetables rates fell by 0.5%, and the transportation product fell by 0.4%.
.(* )The Central Bureau of Stats has actually likewise released the modification in home rates (which are not part of the basic CPI) in between October-November 2023 and November-December 2023. Usually, rates increased 0.7%. In the breakdown by area, rates fell by 1.3% in Jerusalem, and increased by 1.2% in Haifa, by 1.6% in the center, and by 0.8% in the south. In Tel Aviv, rates were flat.
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Costs of brand-new homes increased by approximately 0.9%.
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In the contrast in between November-December 2023 and November-December 2022, the index of real estate rates fell 1.4%. Costs fell by 4.4% in Tel Aviv, by 1.3% in Jerusalem, by 0.8% in the main area, and by 0.1% in the south. Costs increased by 3.3% in the northern area and by 0.3% in Haifa.
.(* )The index of brand-new home rates fell 2.7%.
.(* )The Phoenix Holdings primary financial expert Matan Shitrit describes the repercussions of falling inflation in Israel for the Bank of Israel’s rate of interest policy: “The experts’ projections considered a continuing pattern of decrease in the yearly inflation rate, however regardless of the fall, the possibilities of a rates of interest cut in the next choice stay low. In our view, the procedure of minimizing rates of interest will beware and sluggish, and the Bank of Israel will follow relocations by the United States Federal Reserve and the European Reserve Bank, where the expectation of the start of a procedure of cutting rates is ending up being more remote. The projection by the Bank of Israel Research Study Department for the bank’s rate of interest at the end of 2024 of 3.75-4.00% likewise indicates an extremely steady procedure.
.(* )” As far as the effect of Israel’s sovereign credit score on rates of interest is worried, it is clear that the score downgrade was priced in by the markets, which stayed steady, while the shekel reinforced, which offers a thumbs-up for additional rate of interest cuts. However, while current CPI readings were impacted by a sharp fall in need, existing information show a relatively sharp healing in financial activity, which indicates that the deflationary aspect might dissipate. In addition, inflation projections for the next twelve months, which currently indicated stickiness in inflation, will now begin to consider the increase in the barrel anticipated in January 2025. We approximate that the barrel walking will contribute 0.5 portion indicate the CPI – 0.2 portion points in January 2025 and the rest in the following months.”
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Released by Worlds, Israel company news –
en.globes.co.il
– on February 15, 2024.
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© Copyright of Globes Publisher Itonut (1983) Ltd., 2024.
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