Israel's Consumer Price Index Drops Sharply in September, Housing Prices Decline
Translated & summarized from TheMarker by baba
Israel's Consumer Price Index decreased by 0.5% in September 2026, exceeding economists' expectations for a 0.3% drop, while annual inflation rose to 1.6%. The housing price index resumed its decline, falling 0.6% in July-August, contributing to an 1.8% annual decrease. Most regions saw monthly housing price drops, except for Haifa, while all districts experienced annual declines.
The story in 6 lines · by baba
- Israel's CPI fell 0.5% in September 2026, more than the expected 0.3% decrease.
- Annual inflation in Israel increased slightly to 1.6% in September.
- Housing prices declined 0.6% in July-August 2026, continuing a downward trend.
- The annual housing price index has fallen by 1.8% over the last 12 months.
- Culture, entertainment, and transportation saw the largest price drops in the CPI.
- Fresh vegetable prices increased by 6.6% in September.
Israel's Consumer Price Index (CPI) fell by 0.5% in September 2026, a steeper decrease than the 0.3% economists had predicted. Despite this monthly drop, the annual inflation rate, measuring the change over the last 12 months, edged up slightly from 1.5% to 1.6%. Data from the Central Bureau of Statistics (CBS) indicated significant price decreases in culture and entertainment, down 2.7%, and transportation, down 2.5%. Clothing and footwear prices decreased by 0.9%, while food and home furnishings saw a 0.4% reduction. Conversely, prices rose for fresh vegetables by 6.6%, education 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, most districts experienced a monthly decline, with the exception of Haifa. The Northern district saw a 1.5% decrease, Tel Aviv 0.9%, the Central district 0.7%, Jerusalem 0.3%, and the Southern district 0.1%. Haifa's housing price index rose by 0.4% monthly. On an annual basis, all districts recorded a decrease in housing prices, led by the Central district with a 2.7% drop, followed by Tel Aviv (1.9%), the South (1.5%), Haifa (1.4%), the North (0.8%), and Jerusalem (0.2%). The index for new housing prices also fell by 0.4% monthly and over the last 12 months.
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