Israel's Consumer Price Index Rises 0.3% in July with Unexpected Housing Price Increase

Israel's Central Bureau of Statistics reported a 0.3% increase in the Consumer Price Index (CPI) for July 2026 compared to June, marking a 1.5% rise over the past 12 months. Significant price increases were noted in transportation (up 1.4%), culture and entertainment (up 1.1%), and housing (up 0.7%). Conversely, prices for clothing and footwear dropped by 4.6%, and fresh fruits and vegetables fell by 3.5%.

Rental prices showed notable growth, with a 2.6% increase for tenants renewing leases and a sharp 4.7% rise for new renters. The residential construction input price index slightly decreased by 0.1% in July but rose 2.3% since the start of the year, driven mainly by a 5.4% increase in labor costs, while material prices declined by 0.4%.

Housing transaction prices, which are not included in the general CPI, rose by 0.1% month-over-month between May and June 2026. Regional variations included price increases in Jerusalem (1.8%), Haifa (1.5%), the north (0.9%), and the south (0.7%), while prices fell in the central region and Tel Aviv. Year-over-year, housing prices declined by 1.5%, and new home prices dropped by 2.0%, with the average national price in Q2 reaching 2.435 million shekels.

Additionally, the industrial output price index for local destinations decreased by 1.2% in July, with sharp declines in refined petroleum products (down 12.0%) and basic metals and furniture (down 1.6%). However, prices for computers and electronic equipment rose by 1.1%, and textiles increased by 2.3%. The mining and quarrying price index increased by 0.7% in July but fell 5.4% annually.