The consumer price index rose by just 0.2% in May, despite rising prices that were expected to push the annual inflation rate beyond the 1-3% corridor established by the Bank of Israel. Analysts had anticipated a significant increase, but the unexpected result was largely attributed to a sharp decrease in the cost of holidays abroad, which decreased the price index by 0.3%.
However, prices for fresh fruit increased by 10.3%, as well as for food and recreation and entertainment by 1%. Prices for fresh vegetables (-2.4%) and transport (-1.7%) saw noticeable decreases during the month.
Overall, the data for May indicated a more moderate increase in the consumer price index than initially expected, which had a stabilizing effect on the annual inflation rate.
