The Central Bureau of Statistics published today (Friday) the consumer price index for the month of March. According to the price index report, an increase of 0.4% was recorded, while in the last twelve months (March 2023 vs. March 2022) the index rose by 5.0%.
Notable price increases were recorded in clothing and footwear, which increased by 4.1%, culture and entertainment, which increased by 0.9%, and housing, which increased by 0.6%. On the other hand, notable price decreases were recorded in the fresh fruit items – which decreased by 2.8% and furniture, materials and household maintenance products – which decreased by 1.6%, each.
Rent
The rent section without public rent increased by 0.5%. In the monthly rent, for the tenants who renewed a contract, there was an increase of about 4.2% and for new tenants (apartments in the sample where there was a change of tenant) there was an increase of about 7.2%.
Input price index in residential construction
The input price index for residential construction increased in March 2023 by 0.2%. In the last twelve months, the index of input prices in residential construction increased by 3.7% mainly due to the increase in the prices of materials and products by 7.4% and in the prices of labor wages by 0.9%.
Among the materials and products, the prices of iron nets (by 4.1%), conductors (by 3.6%), finished products made of wood and other materials (by 3.3%) and elevators (by 1.8%) increased in particular. On the other hand, the prices of other concrete products decreased (by 2.7%).
The wage price index paid for those employed in the industry remained unchanged in March 2023.
The price index of industrial output for local destinations
The price index of industrial output for local destinations decreased by 0.2% in March 2023. In the last twelve months, this index increased by 2.7%. This month, the prices of refined petroleum products fell mainly (by 9.1%). On the other hand, the prices of basic metals increased (by 1.3%), medicines for human and veterinary use (by 1.5%), other means of transport and transportation (by 1.7%), food products (by 1.9%), computers, electronic equipment and optical (by 2.2%), processing of leather products and related accessories (by 2.8%) and clothing products (by 25.2%).
Change in housing market prices
From the comparison of the prices of the transactions carried out in the months of January – February 2023 compared to the prices of the transactions carried out in the months of December 2022 – January 2023, it was found that the prices of apartments decreased by 0.2% and thus completed an increase of 12.7% compared to the corresponding period last year.
In the segmentation of apartment price changes by districts, in the months of January – February 2023 compared to the months of December 2022 – January 2023, the following price changes were recorded: Jerusalem (-1.1%), North (2.2%), Haifa (-0.5%), Center (0.3%) , Tel Aviv (-0.5%) and South (-1.5%).
Comparing the current period January – February 2023, compared to the corresponding period last year, January – February 2022, price increases were recorded in all districts: North (17.2%), Center (14.6%), Haifa (13.6%), Tel Aviv (11.1%), Jerusalem (10.1%), and the South (9.1%).
From the comparison of the prices of the transactions carried out in the months of January – February 2023 compared to December 2022 – January 2023, it was found that the prices of the new apartments decreased by 0.3%.
The former Minister of Construction and Housing, MK Ze’ev Elkin said in response to the slowdown in the rate of apartment price increases: “We said that in 2023 the increase in housing prices would be curbed and here it is: today it was announced that apartment prices will decrease in the months of January-February 2023. It is important to maintain the pace. Minister Goldknopf, this year you will insist on more than 100,000 marketings and no less than 30,000 apartments at a discount. Don’t agree to the Treasury plan to severely damage discounts for young couples.”