Israel's August Inflation Rises 0.7%, Driven by Produce and Transport

Israel experienced a 0.7% rise in its consumer price index (CPI) in August 2026 compared to July, reaching 105.8 points, according to data released by the Central Bureau of Statistics. This brings the total increase in the cost of goods and services since the beginning of the year to 2.1%. On an annual basis, inflation stood at 1.5% for the period of August 2025 to August 2026.

The most significant price increases in August were observed in fresh vegetables, which rose by 2.9%. Transportation services saw a 2.7% increase, while culture and entertainment costs climbed by 2%, and housing prices went up by 0.6%.

Conversely, several categories experienced price decreases. Fresh fruits dropped by 2%, clothing by 0.8%, food products by 0.5%, and furniture and home goods by 0.3%.

When excluding volatile items like fruits and vegetables, the CPI still rose by 0.7% in August to 106 points. The index excluding housing also increased by 0.7% to 104.4 points. The CPI excluding energy sources grew by 0.6% to 105.8 points.

For the first eight months of 2026, the CPI excluding fruits and vegetables increased by 2.2%, the index excluding energy sources rose by 1.9%, and the index excluding housing climbed by 1.6%.