Israel's Inflation Eases to 1.5% in July with Slight Rise in Housing Prices

Israel's Consumer Price Index (CPI) increased by 0.3% in July 2026, according to data released by the Central Bureau of Statistics on Friday. This brought the annual inflation rate down slightly from 1.6% to 1.5%. Notable price increases in July were seen 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 rent, tenants who renewed their leases experienced a 2.6% increase in rent, while new tenants in apartments with tenant turnover saw a 4.7% rise. These figures approximate the annual change in rent for these groups, as most tenants remain under fixed rental contracts without adjustment mechanisms.

Housing prices showed a modest increase of 0.1% between May and June 2026 compared to the previous month. Regionally, prices rose by 1.8% in Jerusalem, 1.5% in Haifa, 0.9% in the Northern District, and 0.7% in the Southern District. However, prices fell by 0.7% in Tel Aviv and 1% in the Central District. On an annual basis, housing prices declined by 1.5% from May-June 2025 to May-June 2026.