Israel's Consumer Price Index Drops Sharply in September, Housing Prices Decline Again
Translated & summarized from Haaretz by baba
Israel's Consumer Price Index fell 0.5% in September 2026, exceeding economists' expectations for a 0.3% drop, while the annual inflation rate rose to 1.6%. The housing price index resumed its decline, dropping 0.6% in July-August 2026, contributing to an 1.8% annual decrease. Significant price drops were seen in culture, entertainment, and transportation, while vegetables and rent increased. Housing prices declined across most regions, with the Northern district seeing the largest monthly drop.
The story in 6 lines · by baba
- Israel's September Consumer Price Index fell 0.5%, more than the expected 0.3% decrease.
- Annual inflation in Israel increased slightly to 1.6% in September.
- The housing price index dropped 0.6% in July-August, continuing a downward trend.
- Culture and entertainment prices fell 2.7%, while fresh vegetable prices rose 6.6%.
- Housing prices decreased monthly in all regions except Haifa.
- The annual housing price index has fallen 1.8% over the last 12 months.
Israel's Consumer Price Index (CPI) fell by 0.5% in September 2026, a steeper drop than the 0.3% economists had predicted. Despite this monthly decrease, the annual inflation rate, measuring the change over the last 12 months, edged up slightly from 1.5% to 1.6%. According to data from the Central Bureau of Statistics (CBS), significant price decreases were observed in culture and entertainment, which dropped 2.7%, and transportation, down 2.5%. Clothing and footwear prices fell by 0.9%, while food and home furnishings saw a 0.4% decrease each. Conversely, prices for fresh vegetables rose by 6.6%, educational services by 0.8%, and rent by 0.4%.
The housing price index also resumed its downward trend, recording a 0.6% monthly decrease in July-August 2026 compared to June-July 2026. This follows two months of minimal increases. The latest decline adds to a substantial 1.2% drop in April-May 2026, bringing the total decrease in the housing price index over the past 12 months to 1.8%. The housing price index is calculated separately from the CPI.
Examining housing prices by region for July-August, all districts except Haifa experienced a monthly decrease. The Northern district saw a 1.5% drop, Tel Aviv 0.9%, the Central district 0.7%, Jerusalem 0.3%, and the Southern district 0.1%. Haifa's housing price index, however, rose by 0.4% monthly. On an annual basis, the housing price index declined in all districts, with the Central district experiencing the largest drop at 2.7%, followed by Tel Aviv at 1.9%, the South at 1.5%, Haifa at 1.4%, the North at 0.8%, and Jerusalem at 0.2%. The index for new housing prices decreased by 0.4% monthly and also over the last 12 months.
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