Previous Press Release on Foreign Trade Price Indices Appeared on December27, 2017

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Previous Press Release on Foreign Trade Price Indices appeared on December27, 2017

Jerusalem,

March20, 2018

081/2018

Foreign Trade Price Indices -Goods- 2017

1.2% deterioration in the terms of trade index[1] (excluding ships, aircraft, fuels and diamonds).

Tables

The import price indices[2] (excluding ships, aircraft, fuels and diamonds),increased by3.0% in 2017,aftera decrease of 2.1% in 2016.

The export price indices (excluding ships, aircraft and diamonds), increased by1.7% in 2017, aftera decrease of 2.6% in 2016.

Due to a largerincrease in the import price indexcompared to that ofthe export price index,there was adeterioration of 1.2% in 2017in the terms of trade index (excluding ships, aircraft, fuels and diamonds), following a deteriorationof0.5% in 2016.

Import Price Indices

For the first time since 2012, importprice indicesincreased by 6.4% in 2017.

Detailed databy import destinations show that in 2017 price import indices of fuelsrose by 24.7%, import price index of diamondsrose by 15.2%, import price index of investment goods (excluding ships and aircraft) rose by 3.6%, import price index of raw materials (excl. diamonds and fuels)roseby 3.1% and import price index of consumer goods rose by 2.8%.

The import price index of raw materials (excl. diamonds and fuels) increased by 3.1% in 2017, after a decrease of 3.8% in the previous year.

Detailed data show that the import priceindex ofiron and steel increased by 12.9%,the import price index ofnon-ferrous metalsincreased by 8.7% and theimport priceindex of precious metals increased by 4.8%.

Importprice index of consumer goodsincreased by 2.8% in 2017, after a decrease of 0.4% in 2016.

Import price index of non-durable goods (food, beverages and medicines, clothing and footwear and house-hold utensils) increased by 1.9% in 2016, after a decrease of 1.2% in 2016. Most of the increase in 2017 was in the import price index of food, beverages and medicines (2.4%).

The import price indexof durable goods (furniture and electrical equipment and transport equipment) increased by 3.7% in 2017, followinganincrease of 0.7% in 2016. Most of the increasein 2017was in the import price index of transport equipment(7.8%).

Importprice index of investment goods (excluding ships and aircraft) increased by3.6% in 2017, following an increase of 0.5% in 2016.Detailed data indicate that theimport of transport equipmentincreased by5.9%, following an increase of 3.4% in 2016. The importprice index of machinery and equipment(64% of investment imports)increasedby2.2% following a decrease of 0.8% in 2016.

For the first time since 2012, import price indexof fuelsincreased by 24.7% in 2017. This increase reflects the rise in world prices.

The import price indexof diamondsincreased by 15.2% in 2017, after a decrease of 4.9% in 2016.

Export Prices Indices

The export price index of goodsincreased by 2.9% in 2017, following decreases in the previous three years.

The export price index ofmanufacturing, mining & quarrying (excl.working diamonds) andthe export price index of manufacturing(excluding mining & quarrying and working diamonds) increased by 1.8% each in 2017, following decreasesof 2.6% in 2016.

The export price index of mining and quarryingdecreased by 0.5% in 2017.

Breakdown of Price Indices of Manufactured Exports, by Technological Intensity

The price index of manufactured exportsbyhigh technology industries(48% of manufactured exports excluding diamonds)decreased by 0.5% in 2017, following an increase of 0.5% in 2016. Detailed data by industries point to a decrease in theprice index of manufactured exportsby theair and spacecraft and related machineryindustry(1.0%) and in the price index of manufactured exportsby thecomputer, electronic and optical products industry(0.9%). However, the price index of manufactured exports by thepharmaceutical productsindustryincreased by 0.4%.

The price index of manufactured exportsbymedium-high technologyindustries(30% of manufactured exports excluding diamonds)increased by 4.3% in 2017.It should be noted that it had decreased in the previous four years.Detailed data by industries,point toan increase in theprice index ofmanufactured exportsby thechemical and chemical productsindustry (8.3%) and in theprice index of manufactured exportsbymotor vehicles, trailers and semi-trailersindustry (0.9%).

The price index of manufactured exportsbymedium-low technology industries(15% of manufactured exports excluding diamonds)increased by4.8% in 2017. It should be noted that it had decreased in the previous five years. Detailed data by industries point toan increasein theprice index of manufactured exports by therefined petroleum productsindustry(18.8%) and in theprice index ofmanufactured exportsby thebasic metal productsindustry(9.7%).

The price index of manufacturing exportsbylow technology industries(7% of manufactured exports excluding diamonds)decreased by 0.3% in 2017.It should be noted that this is the fifth consecutive year in which it decreased.Detailed data by industries,point to a decrease in theprice index ofmanufactured exportsby thetextilesindustry(-3.3%) and in the price index ofmanufactured exportsby thefurnitureindustry (-2.4%).

The export price indexof working of diamondsincreased by 2.3% in 2017, following a decrease of 1.4% in 2016.

The export price index ofagricultural,forestry and fishing increased by 2.0% in 2017, after a decreaseof 4.0% in 2016.The export price indexofgrowing of non-perennial cropsincreased by 4.8%and the export price index of growing of perennial cropsincreased by 1.0% in 2017.

Changes in the foreign trade price indices (goods) by country groups in 2017

The importprice index of goods (excluding ships, aircraft, and diamonds)increased by 5.5% in 2017. Detail according to country groups shows that importprice index from USAincreased by 13.2% in 2017, continuing anincrease of 13.3% in 2016.Importprice index from EU countriesincreased by 11.1% in 2017. Importprice index from Asian countries remained unchanged in 2017.

Exportprice index of goods (excluding ships, aircraft, and diamonds) increased by 1.7% in 2017. Detail according to country groups shows thatexportprice index to EU countriesincreased by 3.3%, after a decrease of 3.4% in 2016.Export price index to Asian countriesincreased by 0.4% in 2017.However, exportprice index to USAdecreased by 1.6% in 2017.

Changes in the foreign trade price indices(goods) in the fourth quarter of 2017

In the last quarter of 2017, the import price index (excluding ships, aircraft, fuels and diamonds), increased by 1.1%.

Detailed databyimport destinations groupsshow that in the last quarter of 2017 the import price indexof diamonds increased by 22.5%,import price index of fuels increased by 16.5%, import price index of raw materials (excl. diamonds and fuels) increased by 1.4%, import price index of consumer goodsincreased by 1.2%and price indices of investment goods increased by 0.7%

In the last quarter of 2017, the price index of export of goods (excluding ships, aircraft and diamonds), increased by 0.7%.

Detailed data by technological intensity point toan increase of 2.4% in theprice index of manufactured exports bymedium-high technologyindustries and anincrease of 0.7%in the price index of manufactured exportsbyhigh technologyindustries. In comparison, the price index of manufactured exports by low technologyindustries decreased by 0.8% and the price index of manufactured exports bymedium-low technology industries decreased 0.1%.

In the last quarter of 2017, the export price index of wholesale of diamonds increased by 46.4%. However,the export price index of workingof diamondsdecreased by 7.2%.

In the last quarter of 2017, the export price indices of agricultural, forestry and fishingdecreased by 5.0%. This decrease reflects adecrease in the export price index of growing of non-perennial crops(8.3%).

Detailed data by import country groups (excluding ships, aircraft and diamonds) show that in the last quarter of 2017the importprice index from EU countries increased by 4.3%, the importprice index from USAincreased by 1.4%and theimportprice index from Asian countriesincreased by 0.6%.

Detailed data by export country groups (excluding ships, aircraft and diamonds) show that in the last quarter of 2017 theexportprice index to USA increased by 4.2%, theexportprice index to Asian countriesincreased by 2.2%and the exportprice index to EU countriesincreased by 0.8%.

Next Media Release on Israel's Foreign Trade Indices will appear on June25, 2018.