Israel's Consumer Price Index Rises 0.3% in July with Annual Inflation at 1.5%, Housing Prices Stable

Israel's Consumer Price Index (CPI) increased by 0.3% in July 2026 compared to June, matching analysts' expectations, according to the Central Bureau of Statistics (CBS) report released on Friday. Over the past 12 months, the CPI rose by 1.5%, slightly down from 1.6% in June. Significant price increases were recorded in transportation (1.4%), culture and entertainment (1.1%), and housing (0.7%), while notable decreases occurred in clothing and footwear (-4.6%), fresh fruits and vegetables (-3.5%), furniture and home equipment (-0.7%), and miscellaneous items (-0.4%).

Housing prices, including new and second-hand apartments, showed a slight increase of 0.1% when comparing May-June 2026 to April-May 2026. However, on an annual basis, housing prices declined by 1.5% compared to the same period last year. Regional variations were evident: Jerusalem saw a 1.8% rise, Haifa 1.5%, the north 0.9%, and the south 0.7%, while the central region and Tel Aviv experienced declines of 1.0% and 0.7%, respectively. Yearly trends showed price drops in the center, Haifa, and Tel Aviv, contrasted with increases in Jerusalem, the north, and the south.

New apartment prices rose by 0.5% compared to April-May 2026, with government-subsidized transactions increasing from 36.4% to 38.4%. Excluding subsidized deals, new apartment prices increased by 0.9%, though the long-term trend remains downward, with a 2.0% annual decrease compared to last year. The CBS noted that since late 2025, the housing market has been in a declining phase, the longest such period in the past decade.

Quarterly data showed the average apartment price nationwide in Q2 2026 was 2.435 million shekels, up 3.7% from the previous quarter and 7.9% from Q2 2025. In Tel Aviv, Herzliya, Ramat Gan, and Jerusalem, average transaction prices exceeded 3 million shekels, with Tel Aviv averaging about 4.5 million shekels. The largest annual price increases were in Ashdod (11.0%), Tel Aviv (8.4%), Haifa (6.1%), and Rehovot (4.1%), while Ashkelon (-2.4%), Bnei Brak (-1.7%), Netanya (-1.7%), and Ramat Gan (-1.6%) saw the most notable declines.