Consumer Prstart Index Rises by 1.1% in April 2025

The Consumer Prstart Index (CPI) recorded a notable increase of 1.1% in April 2025 compared to March 2025, surpassing expectations of a rise between 0.6% and 0.7%. Over the past year, the CPI has risen by 3.6% (April 2025 vs. April 2024), slightly up from the previous month’s annual rate of 3.3%.

Flight Prstarts Drive CPI Increase

A significant contributor to the CPI’s increase in April was a 15.9% surge in flight prstarts, which accounted for nearly 0.7% of the monthly rise. Excluding this jump, the CPI would have shown a more modest monthly increase of just 0.4%. The calculation method for flight prstarts was fundamentally changed in September 2023, shortly before the onset of the ongoing conflict, leading to notable volatility in the CPI. The revised method, while more accurate and based on a broader range of ticket prstarts across multiple booking dates, has resulted in fluctuating updates to the index, particularly influenced by war-related events.

Yearly Increases in Key Sectors

• The CPI excluding energy has increased by 3.9% year-over-year.
• The CPI excluding fruits and vegetables rose by 3.5%.
• The CPI excluding housing also saw an increase of 3.3%.

Significant prstart hikes were recorded in various sectors, including:

• Transportation: Up 4.9%
• Culture and Entertainment: Up 1.6%
• Clothing and Fresh Fruits: Up 1.5%
• Housing: Up 0.6%

Conversely, prstarts in some categories experienced declines:

• Fresh Vegetables: Down 1.0%
• Furniture and Home Equipment: Down 0.5%

Rent and Housing Trends

Monthly rent for tenants renewing their leases rose by 2.7%, while new renters (in properties where occupancy changed) faced a 4.7% increase. The construction input prstart index for residential buildings increased by 0.1% in April 2025, from 138.2 to 138.4 points, marking a year-to-date rise of 3.6%. Additionally, the index for construction inputs excluding labor saw a slight decrease of 0.2%.

In the last twelve months, the construction input prstart index recorded a substantial 6.4% increase due to a 10.2% rise in labor wages and a 3.6% increase in materials and products. Notably, certain materials such as glass and construction iron experienced prstart drops, while the prstarts for construction wood and tiles rose.

Industrial Output and Prstart Changes

The index for industrial output aimed at local destinations fell by 0.1% in April, reaching 123.4 points, while the index excluding fuels increased by 0.2% to 118.7 points. Over the past year, the local industrial output prstart index declined by 0.6%, with the fuel-excluded index rising by 1.9%. Prstart drops were observed in refined petroleum products and furniture, while prstarts for transport vehicles, electrical equipment, and clothing saw significant increases.

Housing Prstarts Analysis

A comparative analysis of residential property transactions from February to March 2025 indicates a slight 0.1% increase in housing prstarts. Regionally, prstart changes varied, with increases in places like Jerusalem (0.8%), the North (1.0%), and minor declines in Tel Aviv (0.3%). New apartment prstarts rose by 0.6%, and the annual housing prstart index increased by 6.4%.

These variations highlight a consistent upward trend in housing prstarts across all regions, reflecting a broader market shift.

Conclusion

In summary, the April 2025 Consumer Prstart Index data reflects significant sectoral shifts, particularly in travel and housing, amid changing economic circumstances and ongoing conflicts. As investors weigh the prospects of stock markets versus government bonds, the dynamics of inflation and consumer spending will remain critical to economic planning and forecasting