Israel's Consumer Price Index Drops, Signaling Inflation Slowdown
Translated & summarized from i24NEWS by baba
Israel's Consumer Price Index fell by 0.1% in October 2026, indicating a potential slowdown in inflation after a 1.1% rise over the previous year. Housing prices also continued to decline, with a 0.2% drop in August-September and a 1.5% annual decrease. Rental prices, however, saw increases for both existing and new tenants. The average dwelling price in the third quarter of 2026 was approximately 2.29 million shekels.
The story in 6 lines · by baba
- Israel's Consumer Price Index decreased by 0.1% in October 2026, signaling a potential inflation slowdown.
- Housing prices in Israel continued to fall, with a 0.2% decrease in August-September.
- Rental prices increased for both renewing tenants (2.8%) and new tenants (5.5%).
- The average dwelling price in Q3 2026 was approximately 2.29 million shekels, down 1.5% year-over-year.
- Significant price drops were noted in fresh fruits, transportation, and owner-occupied housing services.
- Clothing and footwear prices rose by 4.1%, and fresh vegetables by 3.5%.
Israel's Consumer Price Index (CPI) saw a decrease of 0.1% in October 2026 compared to September 2026, a notable shift from the previous 12 months where it rose by 1.1%. This decline suggests a potential slowdown in inflation.
Simultaneously, housing prices in Israel continued their downward trend. Significant price drops were observed in fresh fruits (2.8%), transportation (1.4%), and owner-occupied housing services (0.5%). Conversely, clothing and footwear prices increased by 4.1%, fresh vegetables by 3.5%, and home furnishings by 0.3%.
Rental prices experienced an increase for both renewing tenants (2.8%) and new tenants (5.5%), though these figures are approximations of annual changes due to most contracts not being adjusted mid-year. The index of input prices for residential construction rose by 0.4% in October, reaching 104.4 points, and has increased by 3.2% since the start of the year. Over the past 12 months, this index grew by 3.9%, driven by a 5.2% rise in labor costs.
Industrial output prices for domestic destinations increased by 1.9% in October, with a 5.1% rise over the last 12 months. Mining and quarrying prices for domestic destinations rose 0.9% in October, but decreased by 4.2% year-over-year. The Central Bureau of Statistics reported the average price of a dwelling in the third quarter of 2026 was approximately 2,286,000 shekels, a 5.7% decrease from the previous quarter and a 1.5% decrease from the same quarter last year. Tel Aviv remains the most expensive district, with an average apartment price of 3.4 million shekels.
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