In October 2023, the economic scene saw a mix of ups and downs, with the Consumer Price Index (CPI) ticking up by 0.5%, which is in line with expectations. Here’s a simplified breakdown of the key points:
Prices on the Move
- Clothing and Footwear: Went up by 3.9%, nudging consumer spending on attire.
- Vegetables and Fruits: Saw a 3.2% rise, impacting household budgets.
- Transportation: Inched up by 1.0%, reflecting global supply chain challenges.
- Food: Rose by 0.9%, putting added pressure on consumers.
Dips in Prices:
- Entertainment: Offered a slight break with a 0.9% decrease.
- Rental market: Experienced a 0.4% drop, potentially easing the burden on tenants.
- The construction scene showed a 0.2% increase in the input price index, hitting 129.7 points in October 2023. Over the year, it has climbed by 1.9%, fueled by a 2.5% rise in materials and a 1.4% increase in labor costs.
Certain sectors felt the inflation heat:
- Refined Petroleum Products: Shot up by 5.9%.
- Computers and Textiles: Saw a 1.7% price hike.
- Transport and Beverages: Increased by 1.4% and 1.2%, respectively.
- Medicines: Recorded a 1.1% surge.
Housing Check: Stability After a Dip
After five months of falling, housing prices found stability. Looking at transactions from August-September 2023 compared to July-August 2023, apartment prices remained unchanged. District-wise, variations were seen, with Jerusalem (-0.1%), North (0.3%), Center Israel (0.4%), Tel Aviv (-0.4%), and South (-0.1%) showing different trends. In the meantime, the new apartment prices held steady.
On an annual basis, from August-September 2023 to July-August 2022, the overall apartment price index decreased by 0.2%. District-wise, increases were noted in Haifa (4.1%), North (2.8%), and Jerusalem (0.3%), while decreases were observed in South (2.2%), Central Israel (1.7%), and Tel Aviv (0.3%). The annual new apartment price index showed a notable 3.9% decline.
In a nutshell, October 2023 brought a mix of economic shifts, with signs of housing market stabilization after a period of decline. Keeping an eye on these trends in the coming months will be crucial for understanding the broader economic landscape.