Israeli Consumer Prices Rise 0.7% in August, Driven by Food and Transport

Israel's Consumer Price Index (CPI) saw a notable increase of 0.7% in August 2026, bringing the index to 105.8 points, according to data released by the Central Bureau of Statistics. Despite this monthly jump, the annual inflation rate remained steady at 1.5% over the past 12 months, mirroring a similar rise in August of the previous year.

Key drivers of the August increase included fresh vegetables, which rose by 2.9%, transportation costs up by 2.7%, and culture and entertainment, which saw a 2.0% increase. The housing sector also contributed with a 0.6% rise.

Conversely, several categories experienced price decreases. Fresh fruits dropped by 2.0%, clothing and footwear fell by 0.8%, food prices decreased by 0.5%, and furniture and home equipment were down 0.3%.

In the real estate market, apartment prices showed a modest 0.2% increase between May-June and June-July 2026. However, when compared to the same period last year, apartment prices have declined by 1.2%. Rent prices for those renewing contracts increased by 2.6% annually, while new renters faced a sharper rise of 4.4% on average.

Regarding residential construction inputs, the index dipped by 0.1% in July. Nevertheless, on an annual basis, construction input costs have risen by 3.5%, primarily due to escalating labor costs in the sector.