Israel's Consumer Price Index Stable in June as Housing Prices Continue to Fall

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.