Israel's Inflation Rises to 1.6% as Housing Prices Continue to Fall
Translated & summarized from Kan News by baba
Israel's annual inflation rate rose to 1.6% in September, despite a monthly decrease in the Consumer Price Index. Housing prices continued their downward trend, falling by 0.6% in July-August and 1.8% year-over-year, with the Northern District seeing the largest drop. Meanwhile, the Bank of Israel reduced its interest rate by 0.25% for the third consecutive time.
The story in 6 lines · by baba
- Israel's annual inflation rate increased to 1.6% in September.
- The Consumer Price Index decreased by 0.5% in September.
- Housing prices fell by 0.6% in July-August and 1.8% annually.
- The Northern District saw the steepest housing price decline of 1.5%.
- The Bank of Israel cut its interest rate by 0.25% for the third time.
- Fresh vegetable prices surged by 6.6% in September.
Israel's Consumer Price Index (CPI) saw a monthly decrease of 0.5% in September, exceeding expectations, according to data released by the Central Bureau of Statistics. Despite this monthly dip, the annual inflation rate edged up by 0.1 percentage points to 1.6%.
Significant price drops in September were observed in culture and entertainment, which fell by 2.7%, and transportation, down 2.5%. Clothing and footwear prices decreased by 0.9%, while food and home furnishings each dropped by 0.4%. Conversely, fresh vegetable prices rose by 6.6%, education services increased by 0.8%, and rent climbed by 0.4%. For renters renewing contracts, rent increased by 2.4%, and for new tenants in apartments with a change of occupancy, rent rose by 5.3%.
The Central Bureau of Statistics also reported on housing prices, indicating a 0.6% decrease in July-August compared to June-July. On an annual basis, from July-August 2025 to July-August 2026, housing prices fell by 1.8%. The Northern District experienced the sharpest decline at 1.5%. Prices in Tel Aviv dropped by 0.9%, the Central District by 0.7%, Jerusalem by 0.3%, and the Southern District by 0.1%. The Haifa District was the only region to see an increase, with prices rising by 0.4%.
In a separate report, the Bank of Israel lowered its interest rate by 0.25%, marking the third consecutive reduction. This decision comes as inflation remained unchanged, and housing prices saw a 0.2% increase.
Mentioned
