Inflation · 12-mo
Index-linked mortgage tracks grow as the CPI rises. The principal itself swells.
Historical trend
What is Inflation · 12-mo?
Inflation is the rate at which prices rise. Israel's CBS measures it via the Consumer Price Index (CPI), a basket of goods and services an average household consumes (food, housing, transport, education, leisure, etc.). The value shown here is the 12-month change.
How it affects you
If your salary does not at least keep up with inflation, your buying power drops. If your checking account does not earn at least the inflation rate, you lose real money every year. Index-linked mortgages see the principal "swell" with inflation, so you pay more for the same home.
How to read this number
The Bank of Israel inflation target is 1%-3% per year. Values above 3% are considered high and typically prompt rate hikes. Negative values (deflation) are rare and dangerous, a sign of economic slowdown.
Related calculators
Source: CBS Israel
Frequently asked
Expand/collapse: CPI goes up every month: is that bad?
Not necessarily. Moderate growth (1%-3% annually) is part of a healthy economy. The problem is high inflation (above 4%-5%) that spreads uncertainty and triggers rate hikes.