Israel's Consumer Price Index Rises 0.7% in August, Housing Prices See Mixed Trends

Israel's Consumer Price Index (CPI) increased by 0.7% in August 2026 compared to July 2026, according to data released by the Central Bureau of Statistics. Over the past year, from August 2025 to August 2026, the CPI rose by 1.5%.

Significant price increases in August were observed in fresh vegetables (2.9%), transportation (2.7%), culture and entertainment (2.0%), and housing (0.6%). Conversely, notable price decreases occurred in fresh fruits (2.0%), clothing (0.8%), food (0.5%), and furniture and home equipment (0.3%).

Rental prices saw a substantial rise, with a 2.6% increase for contract renewals and a 4.4% increase for new tenants in apartments with tenant turnover. These figures reflect a near approximation of the annual rent change for these groups, as most rents remain stable throughout the year due to fixed contracts without indexation mechanisms.

In the housing market, the overall index for housing transactions rose by 0.2% between May-June and June-July 2026. Regional variations included price increases in Tel Aviv (0.7%), the Center (0.3%), and the South (0.1%), while prices fell in Jerusalem (0.4%), Haifa (0.3%), and the North (0.1%). The index for new apartments increased by 0.5% in the same period.

On an annual basis, the general housing price index decreased by 1.2% compared to the previous year, and the new apartment price index fell by 0.8%. In the second quarter of 2026, the index for second-hand apartments dropped by 1.2% from the first quarter, with significant decreases in Jerusalem (2.9%) and Tel Aviv (2.0%). The Central Bureau of Statistics will now publish the second-hand apartment index quarterly to reduce statistical volatility at the district level.