Israel’s 12-month inflation rate rose to 2.7 percent at the end of March, according to a statement released by the country’s Central Bureau of Statistics on Monday.
This marks an increase from the 2.5 percent reported at the end of February, following six consecutive monthly declines since September last year.
The recent uptick, driven by price increases in cigarettes, accommodation, clothing and footwear, and culture and entertainment, brings Israeli annual inflation close to the upper range of the government’s target, which spans 1 to 3 percent, according to the bureau.
Analysts also attribute the rise in inflation to a resurgence in consumption within Israel. The trend follows a reduction in fighting with Hamas, prompting consumers to complete purchases they had previously postponed since the outbreak of the conflict.
Additional data reveals that housing prices in Israel have returned to an upward trajectory after six months. In the first two months of 2024, housing prices rose by 0.3 percent compared to the same period last year. ■
