Israel Consumer Price Index — detailed update

The Consumer Price Index is a key economic indicator that tracks changes in the price of a representative basket of goods and services purchased by households in Israel. It is the leading measure of inflation and cost-of-living changes.

The CPI is published monthly by the Central Bureau of Statistics, usually around the 15th of the following month.

On CPI-linked mortgage tracks, a rise in the index increases both the outstanding principal and the monthly payment. Therefore the annual inflation rate is a central factor in the real long-term cost of a mortgage.

With a fixed linked track, the quoted interest is lower but the payment moves with the index. With a variable linked track there is double exposure — to both interest-rate changes and to the CPI.

That is why it is important to look not only at the headline rate, but also at inflation expectations and long-term repayment capacity.