Israel's Consumer Price Index Rose 0.7% in August Amid Travel Cost Surge
Translated & summarized from Davar by baba
Israel's Consumer Price Index rose 0.7% in August, driven by a significant jump in travel and hotel costs. While some prices decreased, overall inflation over the last 12 months stands at 1.5%. Apartment prices saw a modest increase, with variations across different regions.
The story in 6 lines · by baba
- Consumer Price Index rose 0.7% in August, below forecasts.
- Overseas travel and domestic flights increased by 9%.
- Hotel and guesthouse prices jumped 12% in August.
- Fuel costs rose 7.2%, while food and clothing prices fell.
- Apartment prices increased 0.2% in June-July.
- New apartment prices decreased 0.8% over the past year.
Israel's Consumer Price Index (CPI) increased by 0.7% in August, falling slightly below the average analyst forecast of 0.9%. Over the past 12 months, the CPI has risen by 1.5%, mirroring the rate recorded in August. Significant price hikes were observed in fresh vegetables (2.9%), transportation (2.7%), culture and entertainment (2%), and housing (0.6%).
The summer months typically see seasonal price increases. Notably, the cost of overseas travel and domestic flights surged by 9%, while hotels and guesthouses saw a 12% increase. Fuel, charging, and oil for vehicles rose by 7.2% in August.
Conversely, some sectors experienced price decreases. Fresh fruit prices dropped by 2%, clothing by 0.8%, and food by 0.5%. Vehicle insurance saw a significant decrease of 8%. Rent for contract renewals increased by 2.6%, while new rental contracts rose by 4.4%, reflecting the typical concentration of contract renewals and new signings in August.
The index of residential construction inputs decreased by 0.1% in August, with a cumulative rise of 2.3% since the start of 2026. The housing price index, which is separate from the CPI, showed a 0.2% increase in apartment prices for June-July compared to May-June. Tel Aviv saw the largest increase at 0.7%, followed by the Central region at 0.3% and the Southern region at 0.1%. The Haifa region experienced a 0.3% decrease, the Northern region 0.1%, and Jerusalem 0.4%.
Over the last 12 months, apartment prices nationwide increased by 1.2%, while prices for new apartments actually decreased by 0.8%. The index for new apartment prices rose by 0.5%.
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