If after the release of Consumer Consumer Price (CPI) index for May, as strange, as the inflation improvement is now 0.3%, more than most of the market estimates, which are at the most of the market estimates, which are at the most of the market estimates, which are at the most of the market estimates, which are at the most of the market estimates, which are at the most of the market estimates, which are at the most of the market estimates, which are at the most of the market estimates, which is at the most of the market estimates, which are at the most of the market estimates, which are at the most of the market estimates, which are in the most of the market estimates, which are at the most of the market estimates, which is at the most of the market estimates, which are at the most of the market estimates? The annual inflation rate of twelve months until the end of June increased to 3.3%, plus above the top of the bank in 1-3% target range.
The air fare is less than a factor
In the past two years, something skewed the CPI up and down in time every time, and harder to consider, which is the air fare. The procedure for calculating this item changed September 2023, before the battle of war, and since then it opened the CPI, however the weight of its index is very small.
In June, air fare fare rises only 4.5%, contributing an increase of 0.09% of the General Index. In April, the air fare rises in 15.9%, lonely accounting for increasing at approximately 0.7% of General Index.
The item responsible for a third of the increase
What does the CPI cause to improve more than expected in June? First and first, it’s the matter at home. This item represents more than one quarter of General CPI, and mainly shows changes in rents. This is responsible for almost half of the last month in the increase in CPI (0.13%). Unlike easy air fares, affected by the cancellation of flight due to the security condition and by changing exchange rate, facilitating rents that reflects the rents with the rents and demands of supplies.
Unlike changes in buying prices in homes (not about General CPI), based on registration of actual transactions, CPI rentals are fully based on surveys. There is no obligation to Israel to report rentals, or any database of real numbers.
Home item has three components: Housing services for homes occupied by owner; Rent; and other housing spending. Because most of the Israelites live in their own homes, services for homes that own the owner are the main ingredient.
Homeowners do not pay rent, but part of the housing service component is an estimate of how much they pay to rent a similar home. This estimate is based on the rents measured by the lease substance.
It’s a reason for anxiety, because the top is still ahead. Among other things, it is due to increasing demand for rent as a result of the destruction caused by Iranian missiles. In commenting on the latest interest rate decision, the Governor of the Bank of Israel Amir Yaron refers to this problem from missile attacks in housing houses. “
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The slump of selling new houses can also raise rents. According to the numbers released by the Central Bureau of Statistics this week, new selling houses fall by 23% in March-May this year. The latest survey of the Housing market of the principal of Finance’s principal indicates the same shape, and found that one of the weakest months for home sales in the past 25 years. Potential buyers decide to wait. Perhaps interests in interest fall; Maybe the downward trend of house prices (according to the Central Bureau of Statistics, prices have fallen for three consecutive months, by a total of 0.6%) accelerate; and all kinds of other reasons. Meanwhile, these people require areas of residence, so the growing pressure of the rents, which translates to the CPI rise.
When will the interest rates fall?
This is probably the main question. The Bank of Israel talks about three interests cut in the middle of 2026, but forts with many conditions need to be fulfilled. It also expects inflation in moderation at all, up to 2.6% by the end of the year. It is a part because of the sharp fall of the risk of Israel’s risk, and the great appreciation of the cycle. The focus is currently switching to the next interest rate decision, due on August 20.
The FICT of Marketist Says Financial Financial Financial Financial Modi Shafrir Before Leasing June June CPI CPI, the market assigns a 33% probability at an interest rate in August. Now, a cut seems to be farther, and another CPI reads fit before the picture is affected. The governor of the bank of Israel explained more than once the price error in cutting interest rates soon, after inflation again. Therefore, in the present situation, where the inflation rate above the Bank of Vicabet of Freice Range, it is difficult to see interest rate that comes in August.
Where is the good news hiding?
Reading June CPI gives a piece of good news, related to car insurance cost. According to the Central Bureau of Statistics’ numbers, it fell to 1.3% last month, and around 6% of the twelve months until the end of June, after a sharp increase at the end of the summer.
Published in Globes, Israel News in News – en.globes.co.il – On July 16, 2025.
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