The Central Bureau of Statistics (CBS) reported last week that Israel's Consumer Prices Index (CPI) rose by 0.4% in April.
In a press release the CBS noted that April's CPI rise was the sharpest monthly rise so far this year.
However, despite the CPI rise Israel’s inflation rate dropped to a six-year low in April. Annual inflation slowed to 0.8% in April from 1.3% in March. That puts inflation below the government’s 1% to 3% target for the first time since July 2007.
Half the rise is explained by a sharp upturn in the housing services item, which reflects rents, of 1.1%.
Other large rises were in clothing and footwear (4.8%), and fresh fruits (6.9%). The price of tomatoes rose 16%. By contrast, fuel prices fell. Inflation year-to-date is 0.4%, a long way from the mid-point of the government's target range of 1-3% Inflation over the past twelve months was 0.8%.
The April CPI reading shows that there is no problem of inflation in the economy, with demand dropping as the economy slows down, except in housing.