Israel's Consumer Price Index Rises 0.3% in July with Annual Inflation at 1.5%
Translated & summarized from Mako by baba
Israel's Consumer Price Index rose 0.3% in July 2026, with annual inflation at 1.5%, within the Bank of Israel's target range. Significant price drops occurred in clothing and fresh produce, while transportation and housing costs increased. Housing prices showed slight monthly growth but declined annually, varying by region.
The story in 5 lines · by baba
- Israel's CPI rose 0.3% in July 2026, matching expectations.
- Annual inflation rate is 1.5%, near the lower Bank of Israel target.
- Clothing and fresh produce prices fell sharply, by 4.6% and 3.5%.
- Transportation and housing prices increased, with rent rising up to 4.7%.
- Housing prices rose 0.1% monthly but fell 1.5% annually, varying by region.
Israel's Consumer Price Index (CPI) increased by 0.3% in July 2026 compared to June, aligning with prior expectations. The annual inflation rate, measuring price changes over the past 12 months, stands at 1.5%, which is within the Bank of Israel's target range of 1% to 3%, but near the lower boundary, intensifying calls for an interest rate cut.
Notable price declines were recorded in clothing and footwear, which fell by 4.6%, fresh fruits and vegetables down 3.5%, home furniture and equipment down 0.7%, and miscellaneous items down 0.4%. Conversely, prices rose significantly in transportation by 1.4%, culture and entertainment by 1.1%, and housing by 0.7%. Rent increases were particularly marked, with renewing tenants facing a 2.6% rise and new tenants experiencing a 4.7% increase.
Regarding housing prices, comparing transactions from May-June 2026 to April-May 2026 shows a slight overall increase of 0.1%, with new home prices rising by 0.5%. Regional price changes included Jerusalem up 1.8%, Haifa 1.5%, the North 0.9%, the South 0.7%, while the Center and Tel Aviv saw decreases of 1.0% and 0.7%, respectively. On an annual basis, housing prices fell by 1.5%, and new home prices dropped 2.0%. Regionally, the Center experienced the largest annual decline at 4.1%, followed by Haifa, Tel Aviv, Jerusalem, the North, and the South with minor decreases or near stability.
These figures reflect a mixed economic environment with moderate inflation and varying regional housing market trends, influencing monetary policy considerations in Israel.
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