According to data published in the most recent report of the Israel Central Statistics Office, national inflation accelerated during August. During that month, inflation reached an annual increase of 3.6%.
According to experts, there are three main reasons for this increase: rising housing costs, rising prices for fresh produce such as vegetables, and the cost of travelling abroad. For example, fresh vegetables rose by 13.2%, transport costs rose by 2.8% and rents for new tenants rose by 5.3%.
The consumer price index (CPI) rose by 0.9% in August, a figure that exceeded the expectations of experts, who had placed the expectation of an increase in the CPI between 0.5% and 0.6% for that month.
This is the highest level recorded since October last year, reducing the likelihood that the Bank of Israel will cut interest rates in the coming months. Bank of Israel Governor Amir Yaron, uncertainty over state finances could prevent inflation from returning to the target range of between 1% and 3%.
Here we see how, even when there is a war, speculators, traders and businessmen do not measure their greed and raise prices. Wages do not increase, the cost of living increases and the result is that Israel begins to regress to the 80s.