Israel - Consumer Price Index (CPI)

For Israel, a monthly consumer price index, detailed with components and "total excluding" variants, with NSA and SA variants, rebased every two years. General index from 1951, detail from 2000.

Active:

• Classification: Similar to COICOP
• Measurements:
  • Fixed-base index relative to 2022 (Index 2022=100)
  • Relative to September 1951 (Index Sep1951=100)
• Adjustments:
  • Seasonally adjusted (SA)
  • Not seasonally adjusted (NSA)
• Native frequency: Monthly
• Start dates:
  • 2023m1
  • 2000m1
  • 1951m9

Predecessors:

• 2020=100 - 2000m1* to 2022m12 ("_20")
• 2018=100 - 1983* to 2020m12 ("_18")
• 2016=100 - 1983* to 2018m12 ("_16")
• 2014=100 - 2000* to 2016
• 2012=100 - 2012m11 to 2014m12 ("_12")
• 2010=100 - 2011* to 2012m12 ("10")
• 2002=100 - 2003 to 2006
• 2000=100 - 2001 to 2002
• 1998=100 - 1999 to 2000

The indices measure the percent of change over time in the cost of a “fixed basket" of goods and services, or the change in revenue obtained for a fixed basket of goods and services. Such a “basket” represents patterns of consumption or production as reflected over a certain period, which constitutes the base period of each index. The basket of each index includes goods and services of fixed or equivalent quality and quantity, so that the changes in index represent changes in prices only.

The weights of each index are value weights, and the importance attributed to each item of the index basket equals the percent of the expenses on it or the revenue from it (during the base period), out of the total expenses or revenue included in the index.

The changes in the price levels of each item of the various indices are estimated according to the changes in the prices of a sample of various goods and services. The sample of goods is determined by their impact on the expenses or revenue covered by the index and by their ability to represent price trends of large groups of similar goods.

Each month, the Central Bureau of Statistics publishes the Index of Prices of Dwellings. Since January 1999, this index has been used only as an indicator and is not included in the Consumer Prices Index.

The prices of each one of the goods or services in each business are recorded by a fixed and detailed definition of the goods according to a set of rules, whose purpose is to ensure that the index represents changes of prices and not of quantity or quality of the goods. In output price indices, i.e., the Consumer Price Index and the wholesale price index of manufacturing output, the prices measured include taxes and impositions on the product, including VAT In input price indices, however, the prices measured include all taxes and impositions, measured regularly. This “basket” represents the consumption of the households. The index is used mainly for various linkages, as well as for determining cost of living, allowances in wages and for analyzing the trends of prices in the economy.

The composition of household consumption expenses during the base period is obtained from Household Expenditure Surveys.

The index of change (in points) in the price of each one of the goods or services is computed according to the price of each as recorded in the various businesses over a given period (one month, a quarter-year, a year) in relation to the base period. The general index is obtained as a weighted average of the price indices of all goods or services whose prices are measured.

The Index of Prices of Dwellings is calculated based on data from the Catalog of Real Estate Prices. Data about purchases of dwellings are collected regularly in the Capital Gains Tax Bureaus throughout the country via the Catalog of Real Estate Prices system. The country-wide file is produced by the Computerized Processing Service (the Ministry of the Treasury's computer unit, which supplies computerization services to the Israel Tax Authority, the State Revenue Administration, and outside clients, including government bodies such as the CBS as well as private entities such as accountants and tax consultants). This file includes information about transactions involving new dwellings and dwellings whose ownership changed.

Moody's Analytics supplements

For the general index (NSA and SA) we back-extend history to c.1951 using the predecessor(s).

Yes, the data are subject to revision.

The index base period is advanced every second year.

Further reading

At the IMF (SDDS):

• Price index: Consumer prices (Jan 2023)

• 29 Jun 2023, Phillip Thorne - Rebased to 2022: Properties.