April Rise in CPI Is Smallest Since 2003

Economists confounded by modest increase in consumer spending.

Moti Bassok
Moti Bassok
Send in e-mailSend in e-mail
Shoppers at a supermarket.
Shoppers at a supermarket. Credit: Ilan Asayag
Moti Bassok
Moti Bassok

The consumer price index rose just 0.1% in April compared to March, the Central Bureau of Statistics reported on Thursday.

The figure confounded analysts’ expectations, who were predicting a jump of about 0.6%. Prices normally rise relatively steeply in April due to demand created by the Passover holiday, which usually falls during that month. This year the holiday began on the evening of April 14.

The April 2014 price increase was the smallest since 2003. Food prices dropped in April by 0.3% and Passover matza this year was 5.9% less expensive than last year. Over the past 12 months, the price index has risen by just 1%, the low point of the 1% to 3% target range set by the government. As a result of the modest rise in the April consumer price index, the Bank of Israel is expected to leave its base interest rate at 0.75% for June.

The relative stability in the cost of consumer goods reflects what has been generally felt for several months and that is that is that consumer demand has been lax. On the other hand, government tax collection is up this year — a sign of a healthy economy.

Click the alert icon to follow topics:



Automatic approval of subscriber comments.
From $1 for the first month

Already signed up? LOG IN


בנימין נתניהו השקת ספר

Netanyahu’s Israel Is About to Slam the Door on the Diaspora

עדי שטרן

Head of Israel’s Top Art Academy Leads a Quiet Revolution

Charles Lindbergh addressing an America First Committee rally on October 3, 1941.

Ken Burns’ Brilliant ‘The U.S. and the Holocaust’ Has Only One Problem

Skyscrapers in Ramat Gan and Tel Aviv.

Israel May Have Caught the Worst American Disease, New Research Shows

ג'אמיל דקוור

Why the Head of ACLU’s Human Rights Program Has Regrets About Emigrating From Israel


Netanyahu’s Election Win Dealt a Grievous Blow to Judaism