Israeli Stock Market Plummets, Dollar Surges Amid Inflation Data
Translated & summarized from Kan News by baba
Israel's stock market experienced sharp declines on Thursday, with the TA-35 index falling 3.7%, while the dollar strengthened 3% against the shekel. This occurred as September inflation data showed a 0.5% drop in the consumer price index, though the annual inflation rate rose to 1.6%. Apartment prices also saw a 0.6% decrease in July-August, with the Northern district experiencing the largest fall. Additionally, gasoline prices are set to rise, and airlines will report on flight crews to Israel.
The story in 5 lines · by baba
- Israeli stock indices TA-35 and TA-125 fell 3.7% and 3.4% respectively on Thursday.
- The U.S. dollar rose 3% against the Israeli shekel, reaching a representative rate of 3.16.
- September's consumer price index dropped 0.5%, exceeding expectations, while annual inflation edged up to 1.6%.
- Apartment prices decreased by 0.6% in July-August, with the Northern district seeing the largest decline.
- Gasoline prices will increase by 0.50 shekels per liter to 7.85 shekels.
The Tel Aviv Stock Exchange closed Thursday with sharp declines, as the TA-35 index dropped 3.7% and the TA-125 index fell 3.4%. Concurrently, the U.S. dollar strengthened by 3% against the Israeli shekel, with its representative rate set at 3.16 shekels.
These market movements occurred as the Central Bureau of Statistics released data showing a 0.5% decrease in the consumer price index for September, a larger drop than anticipated. The annual inflation rate rose slightly to 1.6%.
Significant price decreases in September were observed in the culture and entertainment sector, down 2.7%, and transportation, down 2.5%. Clothing and footwear prices fell by 0.9%, while food and home furnishings each decreased by 0.4%. Conversely, fresh vegetable prices increased by 6.6%, education services by 0.8%, and rent by 0.4%. Rent increases were particularly notable for those renewing leases (2.4%) and new tenants in apartments with a change of occupant (5.3%).
The Bureau also reported that apartment prices declined by 0.6% in July-August compared to June-July. On an annual basis, from July-August 2025 to July-August 2026, prices decreased by 1.8%. The Northern district saw the steepest price drop at 1.5%, followed by Tel Aviv (0.9%), the Center (0.7%), Jerusalem (0.3%), and the South (0.1%). Haifa was the only district to experience a price increase, up 0.4%.
Separately, the price of gasoline is set to increase by half a shekel, reaching 7.85 shekels per liter. In related news, airlines will now be required to report on flight crews traveling to Israel.
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