Consumer Price Index Drops 0.5% in September, Housing Prices Fall 0.6%
Translated & summarized from Channel 13 by baba
Israel's Consumer Price Index fell by 0.5% in September 2026, with a 1.6% increase year-over-year. Housing prices saw a 0.6% decrease in July-August compared to the previous two months, and a 1.8% annual drop. Major price decreases were noted in culture, entertainment, and transportation, while fresh vegetables and education services increased. Rent prices rose for both renewing and new tenants.
The story in 6 lines · by baba
- Israel's Consumer Price Index decreased by 0.5% in September 2026.
- Housing prices dropped by 0.6% based on July-August transactions.
- Annual housing prices decreased by 1.8% compared to the previous year.
- Culture and entertainment prices fell by 2.7%, transportation by 2.5%.
- Fresh vegetable prices increased by 6.6% in September.
- Rent for renewing tenants rose 2.4%, for new tenants 5.3%.
Israel's Consumer Price Index (CPI) decreased by 0.5% in September 2026 compared to August 2026. Over the past year, from September 2025 to September 2026, the CPI rose by 1.6%.
Significant price drops were observed in culture and entertainment, which fell by 2.7%, and transportation, down 2.5%. Clothing and footwear decreased by 0.9%, while food and furniture/home equipment each dropped by 0.4%. Conversely, notable price increases occurred in fresh vegetables, up 6.6%, and education services, up 0.8%. Rent prices saw a 0.4% increase overall.
For renters renewing contracts, rent increased by 2.4%, and for new renters in apartments with tenant turnover, rent rose by 5.3%. These figures are approximations of the annual rent change for these groups, as most rents remain fixed under contracts without indexation clauses throughout the year.
In the construction sector, the input price index for residential building rose 3.6% in the last 12 months, driven by a 5.3% increase in labor costs. Material and product prices saw a 0.2% increase in September 2026.
Regarding housing, the index of apartment prices decreased by 0.6% based on transactions in July-August 2026 compared to June-July 2026. Regionally, prices fell in Tel Aviv (-0.9%), the Center (-0.7%), Jerusalem (-0.3%), the North (-1.5%), and the South (-0.1%), while Haifa saw a slight increase of 0.4%.
Annually, from July-August 2025 to July-August 2026, apartment prices decreased by 1.8% across all regions. The largest annual drops were in the Center (-2.7%), Tel Aviv (-1.9%), the South (-1.5%), Haifa (-1.4%), the North (-0.8%), and Jerusalem (-0.2%).
