Consumer Prices Fall in September Amid Mixed Trends
Translated & summarized from Behadrei Haredim by baba
Israel's Consumer Price Index fell 0.5% in September, with annual inflation at 1.6%, driven by lower travel and hotel costs. However, vegetable prices surged, with tomatoes up 19.1%, and rental costs increased, especially for new tenants. Apartment purchase prices continued to decline, down 0.6% in July-August and 1.8% annually.
The story in 6 lines · by baba
- Israel's Consumer Price Index decreased by 0.5% in September, with annual inflation at 1.6%.
- Prices for flights and hotels dropped significantly, contributing to the overall CPI decrease.
- Fresh vegetable prices rose sharply, led by a 19.1% increase in tomato prices.
- Rental housing costs increased by 0.4% overall, with new leases up 5.3%.
- Apartment purchase prices fell by 0.6% in July-August, a 1.8% annual decrease.
- Pre-primary education costs saw a 3.8% annual increase.
Israel's Consumer Price Index (CPI) decreased by 0.5% in September 2026, according to data released by the Central Bureau of Statistics. This brought the annual inflation rate to 1.6%. However, the overall decrease masks significant variations in household expenses. While prices for vacations, flights, and hotels dropped sharply, consumers faced higher costs for vegetables and rental housing.
Significant price reductions were seen in travel and tourism, with overseas and domestic flights falling by 7.3%, and hotels and guesthouses plummeting by 14.2%. Transportation costs decreased by 2.5%, culture and entertainment by 2.7%, and clothing and footwear by 0.9%. Fuel prices also declined by 2.2%.
Conversely, fresh vegetable prices rose by 6.6% in September, with notable increases for tomatoes (19.1%), zucchini (14.6%), peppers (10.2%), and eggplants (10.1%). Fruit prices also saw fluctuations, with watermelons up 37.1% and grapes up 12.7%, while avocados dropped 31.6%.
The rental market showed an increase, with overall rents up 0.4%. Those renewing leases saw an average increase of 2.4%, while rents for new tenants rose by 5.3%. In contrast, purchase prices for apartments decreased by 0.6% in July-August compared to the previous two months, marking an annual decline of 1.8%, with the Central District experiencing the sharpest yearly drop of 2.7%.
Construction input costs rose 0.1% in September, contributing to a 2.8% increase year-to-date. Education service costs increased by 0.8% monthly, with pre-primary education payments up 3.8% annually.
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