Israel's Consumer Price Index Rises 0.3% in July as Inflation Eases to 1.5%
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In July 2026, Israel's consumer prices rose 0.3%, easing annual inflation to 1.5%. Transportation, culture, and housing costs increased, while clothing and fresh produce prices fell. Rent prices rose notably for both renewing and new tenants. Housing prices showed mixed regional trends with a slight overall annual decline.
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- Israel's CPI rose 0.3% in July 2026, lowering annual inflation to 1.5%.
- Transportation, culture, and housing prices increased notably in July.
- Clothing, fresh produce, and furniture prices saw significant declines.
- Rent increased 2.6% for renewing tenants and 4.7% for new tenants.
- Housing prices rose 0.1% monthly but fell 1.5% annually with regional variations.
- New home prices rose 0.5% monthly but dropped 2.0% annually.
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%.
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