In May, analysts predicted a significant increase in the consumer price index due to rising prices. However, the Central Bureau of Statistics reported that the index only rose by 0.2%, keeping inflation steady at 2.8% over the past year.
One of the reasons for this unexpected outcome was a significant drop in the cost of holidays abroad, which decreased by 7.4% and subtracted 0.3% from the overall price index. This was a stark contrast to the previous month when this expense category had added 0.5% to the index for April.
On the other hand, there were noticeable increases in prices for fresh fruit (10.3%) and for food, recreation, and entertainment (1%). Prices for fresh vegetables (-2.4%) and for transportation (-1.7%) both decreased during the same period. Despite these fluctuations, analysts expect inflation to remain within the 1-3% range set by the Bank of Israel in May and beyond.
