Israel's Consumer Price Index Rises 0.3% in July as Inflation Eases to 1.5%

Israel's Consumer Price Index (CPI) increased by 0.3% in July 2026 compared to June, according to data released by the Central Bureau of Statistics on Friday. This rise contributed to a slight easing of the annual inflation rate from 1.6% to 1.5%. Notable price increases were recorded in transportation (up 1.4%), culture and entertainment (up 1.1%), and housing (up 0.7%). Conversely, significant price declines occurred in clothing and footwear (down 4.6%), fresh fruits and vegetables (down 3.5%), furniture and home equipment (down 0.7%), and miscellaneous items (down 0.4%).

Regarding rental prices, tenants who renewed their leases saw a 2.6% increase in rent, while new tenants experienced a 4.7% rise. These figures approximate the annual change in rent prices for these groups, as most tenants remain under fixed rental contracts without adjustment mechanisms.

The housing price index rose slightly by 0.1%. Regional price changes varied, with increases in Jerusalem (1.8%), the North (0.9%), and Haifa (1.5%), while decreases were noted in the Central district (-1.0%) and Tel Aviv (-0.7%), as well as the South (-0.7%). The price index for new homes increased by 0.5%. On an annual basis, housing prices fell by 1.5%, with the largest declines in the Central district (-4.1%), Haifa (-1.8%), and Tel Aviv (-1.7%). In contrast, prices rose annually in Jerusalem (1.8%), the North (1.6%), and the South (0.1%). The annual index for new home prices dropped by 2.0%.