Israelis Boost Summer Spending Amid Rising Prices

Israeli consumer spending saw a significant increase over the summer months, with a 7.9% rise in August and July compared to the same period last year. Over the past four years, spending has grown by more than 40%. Fuel stations recorded record spending in August, averaging 68.8 million shekels daily and totaling approximately 2.13 billion shekels, a 13.8% increase year-over-year. This surge is largely attributed to higher fuel prices, with a liter of gasoline costing 8.09 shekels in August, up from 7.07 shekels in August 2025.

Credit card spending also reached a monthly high in July at 55 billion shekels, followed by 54 billion shekels in August, a 10% increase from the previous year. Food retailers led spending in August with 6.3 billion shekels, a 6% rise, followed by restaurants, where spending increased by 11.2% to about 4.2 billion shekels. The electricity and fashion sectors each saw an 8.2% increase in spending, reaching roughly 3 billion shekels apiece.

Conversely, spending with Israeli airlines declined by 0.8% to about 427 million shekels, as consumers shifted some demand to foreign carriers not included in the "Sheva" data. In-store and mall spending averaged 758 million shekels daily in August, an 8.1% increase, totaling approximately 23.5 billion shekels for the month. Online purchases reached 30.6 billion shekels, an 11.5% annual increase, though the average daily online spending in August decreased by 4.2% compared to July.

Cash withdrawals from ATMs remained stable, with approximately 5.9 billion shekels withdrawn in August, similar to the previous year. The overall rise in credit card spending is seen as reflecting general price increases and nominal spending growth rather than a significant shift from cash to card usage.