Decrease of 0.1% in the Consumer Priceindex, July 2017

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Jerusalem,

August 15, 2017

240/2017

Decrease of 0.1% in the Consumer PriceIndex, July 2017

• The Consumer Price Index decreased 0.1% in July2017 compared to June 2017. It was 99.9 points, compared to 100.0 points in the previous month (base: average 2016 = 100.0 points). The index excluding housing decreased 0.4% and was 99.2 points. In contrast,the index excluding vegetables and fruit remained unchanged and was 100.0 points and the index excluding energy increased 0.1% and was 99.9 points.
• Prices of the following items decreased in particular: clothing and footwear8.1%,fresh vegetables 2.0% and furniture and household equipment 0.9%.
• Prices of the following items increased in particular: fresh fruit 1.5% and housing 0.9%.
• Since the start of the year, the all items index,the index excluding vegetables and fruit and the index excluding energy decreased 0.1%, each andthe index excluding housing decreased 0.7%.
• Over the past 12 months (July2017 compared to July2016), the all items index and the index excluding energy decreased 0.7%, each. The index excluding housing decreased 1.4% andthe index excluding vegetables and fruit decreased 0.6%.
• The seasonally adjusted consumer price index in July 2017 decreased 0.4%, the seasonally adjusted index excluding housing decreased 0.5% and the seasonally adjusted indexexcluding vegetables, fruit and housing decreased 0.3%.
• Based on the trend data for the period April 2017 – July2017, the annual pace of decrease in the CPI was 1.5%;the annual pace of decrease for the index excluding housingwas 2.4%and the annual pace of decrease for the index excluding vegetables, fruit and housing was 3.0%.

Please note: This Press Release is for Publication

After 18:30 PM on Tuesday, August 15, 2017

Diagram 1 – Monthly Percentage Change in CPI duringthe Past 12 Months

Diagram 2 – CPI 12-Month Inflation Rate for the Past 10 Years: July2007 to July2017

Product and Service Groups that Particularly Influenced the Index This Month:

Major Changes in Primary Consumption Items

Food (excludingvegetables and fruit)

The food price index decreased 0.2%.

The following decreased in particular:crackers (various) (4.9%), wafers (3.4%), salty snacks (3.1%), ice cream (2.8%), tahini (2.5%), fish (2.4%), mayonnaise (2.3%), concentrates and syrups (2.0%), fresh and frozen meat substitutes and products thereof (1.9%), sugar substitutes (1.9%), dough and pastry products (frozen) (1.8%), malt beer (1.8%), chicken and parts thereof (1.6%), cultured milk, yogurt, and milk desserts (1.4%), brined cheese (1.4%), soft drinks, carbonated (1.4%), various cereals (1.3%), chocolate (1.3%), vinegar, mustard, sauces, and dressings (1.3%), beef, internal parts (1.1%) and soy drinks or flavoured milk (1.0%).

The following increased in particular:soft drinks, non-carbonated (3.3%), tea (3.0%), halvah, all types (2.9%), prepared vegetable salads (2.8%), cookies and biscuits (2.6%), jam and confiture (2.5%), raw rice (1.9%), natural fruit juices (1.9%), syrups and maple syrup (1.8%), canned and processed fish (1.7%), chocolate spread, butterscotch spread and peanut butter (1.5%), cocoa (1.5%), white flour (1.3%), mutton (1.3%), sugar (1.1%) and soda water and mineral water (1.0%).

Vegetables and Fruit

The vegetables and fruit index decreased 0.1%.

The fresh vegetables index decreased 2.0%; in contrastthe fresh fruit index increased 1.5%.The frozen, pickled and canned vegetables index increased 1.9% andthe driedandcanned fruit index increased 0.1%.

Among the fresh vegetables, the following decreased in particular: tomatoes (12.3%), pumpkin and butternut squash (8.3%), potatos and sweet potatos (7.0%), peppers (6.9%), corn on the cob (6.7%), fresh beans (6.1%), onions (3.1%), fresh mushrooms (3.0%), carrots (2.8%), fennel (2.1%), artichoke (2.0%), garlic (1.8%) and eggplant (1.8%).

The following increased in particular: squash (17.7%), cabbage (11.1%), broccoli (10.8%), cauliflower (10.6%), cucumbers (9.6%), lettuce (3.5%), kohlrabi (3.3%) and radishes (1.8%).

Among the fresh fruit, the following increased in particular:lemons (32.4%), bananas (32.2%), cherries (13.1%), mangos(rose 4.7% compared to October 2016),apples (4.4%) and oranges (1.4%).

The following decreased in particular: table grapes (30.3%), watermelon (20.9%), plums (19.4%), pears (9.4%) and sugar melons (4.1%).

Among the processed vegetables and fruit, the following increased in particular: other frozen vegetables (4.6%), walnuts and pistachio nuts (2.4%), canned vegetables (1.9%) and pickled vegetables (1.4%).

The following decreased in particular: peanuts (4.3%), almonds (1.5%) and seeds (1.2%).

Housing

The housing price index increased 0.9%.

The owned dwellings servicesindex increased 1.2% and the rent index increased 0.1%.

Owned Dwellings Services

The owned dwellings services index showed anincrease in July2017 compared to June2017. This increase reflects the changes in rental prices set in contracts signed in June2017–July2017, compared to contracts signed in May2017–June2017.

Additional Housing Market Indicators Not Included in the Consumer Price Index[1]

Prices of Dwellings (Table 6.1 in Price Statistics Monthly, Consumer Price Index, Housing Section)

A comparison of transactions carried out during May2017–June2017, compared to transactions carried out during April2017 – May2017, showed that dwelling prices increased 0.1%. This decrease reflects price changes with the deduction of changes in quality of the dwellings in the mix and in the dwelling type. The datum is not final because additional transactions were carried out during this period but not yet reported. A comparison of transactions carried out during May2017 – June2017, compared to transactions carried out during May2016 – June2016, showed a price increase of 4.5%. A comparison of the April2017 – May2017 transactions, compared to April2016 – May2016, showed a4.6% increase.

Average Prices of Owned Dwellings (Tables 6.2–6.3 in Price Statistics Monthly, Consumer Price Index, Housing Section)

The average nationwide price of transactions carried out during the second quarter of 2017 was 1,432,700NIS, as compared to the average price during the first quarter of 2017, which was 1,489,900 NIS. This decrease (3.8%) reflects both the change in price level and the changes in quality and size of the dwellings sold.

Dwelling Maintenance

The dwelling maintenance index decreased 0.1%.

The following decreased in particular:kerosene and diesel oil for heating (4.3%), laundry detergent, cleaning materials, and pesticides (1.1%) and other household articles, such as candles, matches, and bags (1.1%).

Furniture and Household Equipment

The furniture and household equipment index decreased 0.9%.

The following decreased in particular: bedding and towels (6.5%), dining room tables and chairs (2.7%), outdoor furniture (2.7%), mugs, cups, and glasses (2.0%), serving dishes and storage containers (1.9%), kitchen accessories (1.9%), home decorations (1.9%), cooking and baking utensils (1.7%), cutlery (1.6%), other household electrical equipment (1.5%), miscellaneous cleaning utensils (1.4%), fan (1.3%), buffets (1.2%), other equipment for babies (1.2%), plates (1.2%) and sofas and armchairs (1.1%).

The following increased in particular: furniture for babies (1.1%).

Clothing and Footwear

The clothing and footwear index decreased 8.1%; the seasonally adjusted index decreased 1.5%.

The clothing index decreased 8.6% and the footwear index decreased 6.2%.

Among clothing items, the followingdecreased in particular: outerwear (9.8%),miscellaneous clothing such as hats and swimsuits (9.6%), sports and exercise clothes (6.9%) andunderwear (4.4%).

Among footwear items, the following decreased in particular:women‘s footwear (7.3%),children‘s footwear(7.3%) and men‘s footwear(4.2%).

Health

The health index increased 0.3%.

The following increased in particular: health fund complementary insurance(1.9%) andlab tests and x-rays(1.8%).

The following decreased in particular: fashion sunglasses (5.8%) and medicines and miscellaneous medical appliances (1.0%).

Education, Culture and Entertainment

The education, culture and entertainment index remained unchanged.

The education services andthe culture and entertainment index remained unchanged, both.

The following decreased in particular: theatre tickets (2.2%), computers and peripheral equipment (1.4%), notebooks and paper products (1.3%), hotels and guest houses (1.3%) and baby toys (1.2%).

The following increased in particular: fiction and nonfiction books (12.7%), religious books (3.5%), museum entrance tickets (3.1%), summer camp for children(rose 2.3% compared to August 2016), holiday villages, hostels and rural tourism (2.5%), camping equipment and accessories (1.1%) and art supplies (1.0%).

Transport and Communication

The transport and communication index increased 0.1%.

The transport index increased 0.2%; in contrastthe communication index decreased 0.2%.

The following increased in particular:driving lessons, car rentals etc. (5.2%) and expenditures for travel abroad and domestic flights (4.7%).

The following decreased in particular:vehicle fuel and lubricants (3.8%), vehicle accessories and washing vehicle (1.9%), cars (1.4%)and internet services (1.1%).

Miscellaneous

The miscellaneous index decreased 0.1%.

The following decreased in particular: make-up and cosmetics (1.9%), toiletries and bath products (1.2%), diapering products and accessories for babies (1.2%) and watch repair (1.1%).

The following increased in particular: shaving accessories, shaving creams, and hair removal (2.1%) and creams, perfume, and facial products (1.9%).

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[1]For explanations, see Appendix 1.3 to the CBS's Price Statistics Monthly, "Methodology for Calculating the Index of Prices of Dwellings, and Quarterly and Annual Averages".