What is the Consumer Price Index (Madad)?

The Consumer Price Index (CPI) or Madad, as it is commonly known, is the most official and comprehensive price index in Israel, which is supposed to reflect changes in the cost of living for the public in general, and for decision-makers in the government and the economy. The inflation rate in Israel is determined by this indicator. The index is published by the Central Bureau of Statistics each month on the 15th of the month and relates to the previous month. Thus, for example, an index published on December 15 refers to November prices.

The CPI or Madad is comprised of dozens of components that measure various consumption sectors in Israel such as fruits and vegetables, clothing and footwear, etc.  When it comes to real estate, the index includes one main component – “housing”, which mainly expresses rent prices, and gives less weight to auxiliary real estate services such as brokerage, insurance, or property management.

This guide is intended to provide the reader with general information and not to serve as legal or other professional advice. Readers are advised to obtain advice from qualified professionals before entering into any real estate transaction.

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