Israel's Consumer Price Index Stable in June as Housing Prices Continue to Fall
Translated & summarized from Srugim by baba
Israel's consumer prices held steady in June 2026, with a 1.6% annual increase below inflation targets, while housing prices declined by 1.0% overall and rental costs rose significantly.
The story in 6 lines · by baba
- Israel's CPI remained unchanged in June 2026 compared to May 2026.
- Annual CPI increase was 1.6%, below the 3% inflation target.
- Prices rose in culture, housing, health, and food sectors.
- Significant price drops occurred in fresh produce, clothing, transportation, and furniture.
- Housing prices fell 1.0% from April-May 2026 compared to March-April 2026.
- Rental prices increased by 2.6% for renewals and 6.6% for new tenants.
Israel's Consumer Price Index (CPI) remained unchanged in June 2026 compared to May 2026, marking a stable month for inflation. This contrasts with June 2025, when the CPI rose by 0.3%. Over the past year, from June 2025 to June 2026, the CPI increased by 1.6%, staying well below the annual inflation target of up to 3%. Price increases were noted in culture and entertainment (up 1.0%), housing (up 0.7%), health (up 0.6%), and food (up 0.4%). Conversely, significant price decreases occurred in fresh vegetables and fruits (down 5.2%), clothing and footwear (down 2.7%), transportation (down 0.7%), and furniture and home equipment (down 0.5%).
Housing prices continued their downward trend in June 2026, according to the Central Bureau of Statistics. Comparing transaction prices from April-May 2026 to those from March-April 2026, the housing price index fell by 1.0%. Regional breakdowns showed declines in Jerusalem (down 1.8%), the North (down 0.3%), Haifa (down 0.5%), and Tel Aviv (down 2.3%), while prices in the Center and South remained stable. The index for new housing prices also decreased slightly by 0.1%. Meanwhile, rental prices rose, with a 2.6% increase for lease renewals and a 6.6% increase for new tenants in sampled apartments experiencing tenant turnover.
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