Israel's Consumer Price Index Rose 0.7% in August Amid Travel Cost Surge

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%.