Despite recent sharp increases in the Bank of Israel’s (BOI) interest rates, the annual consumer price index (CPI) stayed at a rate of 4.6% in September, according to data released on Friday by the Central Bureau of Statistics. It is slightly above the market’s expectation of 4.5%.

According to the bureau, price increases in fresh produce, healthcare, education, and furnishings drove the 0.2% increase in the August CPI compared to September. In contrast, notable decreases were recorded in transportation, communication, entertainment and food (excluding fruits and vegetables).

Home prices, which are not reflected in the CPI, increased by 1.9% from June to July to reach a 19% increase from the previous year, making it the highest annual price increase in a decade.

The Bank of Israel will decide on its next interest rate on November 21 and it is not anticipated that the published data will have a significant impact on that decision. According to economists, BOI is expected to raise the interest rate by at least another 50 basis points and continue to increase it to 3.75% in 2023.