Israel's Consumer Price Index Rises 0.3% in July Amid Annual Housing Price Decline

Israel's Consumer Price Index (CPI) increased by 0.3% in July 2026, in line with forecasts, according to data released by the Central Bureau of Statistics (CBS) on Friday. This rise compares to a 0.4% increase in the same month last year, resulting in a slight annual inflation decrease of 0.1% to 1.5%. Notable price increases were recorded in transportation (1.4%), culture and entertainment (1.1%), and housing (0.7%), while significant price drops occurred in clothing and footwear (4.6%), fresh fruits and vegetables (3.5%), furniture and home equipment (0.7%), and miscellaneous items (0.4%).

Rental prices showed a marked increase, with a 2.6% rise for tenants renewing leases and a 4.7% increase for new tenants in apartments with tenant turnover. Separately, the CBS housing price index for May-June 2026 indicated a modest 0.1% price increase compared to April-May 2026. Regional price changes included rises in Jerusalem (1.8%), the North (0.9%), and Haifa (1.5%), while declines were seen in the Center (1.0%) and Tel Aviv (0.7%).

The index for new housing prices rose by 0.5% in the same period, with government-subsidized transactions increasing from 36.4% to 38.4% of new home sales. Excluding government-subsidized sales, new housing prices rose by 0.9%. Comparing May-June 2026 to the same period in 2025, overall housing prices fell by 1.5%, with decreases in the Center (4.1%), Haifa (1.8%), and Tel Aviv (1.7%), but increases in Jerusalem (1.8%), the North (1.6%), and the South (0.1%). New housing prices declined 2.0% year-over-year.