Israel's Consumer Price Index Rises 0.7% in August, Annual Inflation Holds Steady
Translated & summarized from Vesty by baba
Israel's Consumer Price Index rose 0.7% in August, keeping the annual inflation rate at 1.5%, the lowest since 2021. Housing prices showed mixed trends, with rentals increasing and apartment sales seeing a slight overall rise but regional decreases. Second-hand apartment prices declined in the second quarter.
The story in 5 lines · by baba
- August CPI rose 0.7%, annual inflation at 1.5% is lowest since 2021.
- Fresh vegetables and transportation costs saw significant monthly increases.
- Rental prices increased, especially for new tenants.
- Apartment sales prices rose slightly overall but fell in some regions.
- Second-hand apartment prices decreased in Q2 2026.
Israel's Consumer Price Index (CPI) increased by 0.7% in August, according to data released by the Central Bureau of Statistics (CBS) on Tuesday, September 15. This monthly rise, mirroring the 0.7% increase in August 2025, resulted in the annual inflation rate remaining unchanged at 1.5%. This figure represents the lowest annual inflation rate observed since 2021.
Key price increases in August included fresh vegetables (2.9%), transportation (2.7%), culture and entertainment (2.0%), and housing maintenance (0.6%). Conversely, prices decreased for fresh fruit (2.0%), clothing (0.8%), food items excluding fruits and vegetables (0.5%), and furniture and household goods (0.3%).
The CBS also reported on the housing market. Rental prices for existing tenants who renewed their contracts rose by 2.6%, while prices for new tenants increased by 4.4%. In terms of sales, apartment prices saw a 0.2% increase in June-July 2026 compared to May-June. However, prices declined in the Jerusalem (-0.4%), Northern (-0.1%), and Haifa (-0.3%) districts, while rising in the Central (0.3%), Tel Aviv (0.7%), and Southern (0.1%) districts.
Year-over-year, apartment prices have decreased by an average of 1.2%. Annual price drops were noted in the Central (-3.2%), Haifa (-2.4%), Tel Aviv (-0.9%), and Southern (-0.6%) districts, with increases in the Jerusalem (1.1%) and Northern (1%) districts. The index for new apartments rose by 0.5% in June-July 2026 compared to the previous two-month period. During this time, the share of subsidized housing transactions increased from 37.8% to 41.7%.
Prices for second-hand apartments fell by 1.2% in the second quarter of 2026, primarily due to decreases in the Tel Aviv, Jerusalem, and Central districts. Prices saw slight increases in the Haifa, Northern, and Southern districts.
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