Full coverage· Economy· Updated 15 Jul, 18:44

Israel's Consumer Price Index Stagnates While Housing Prices Drop Sharply Since 2018

Israel's Consumer Price Index held steady in June while housing prices fell sharply, marking the largest drop since 2018. Inflation decreased to 1.6 percent annually amid interest rate cuts, with regional variations in housing price declines.

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Israel's Consumer Price Index Stagnates While Housing Prices Drop Sharply Since 2018 — Illustration by baba

What happened

01Israel's Consumer Price Index remained unchanged in June compared to May.
02Inflation dropped to 1.6% over the past 12 months amid interest rate cuts.
03Housing prices fell 1% between April and May 2026, the largest decline since 2018.
04Jerusalem saw the biggest housing price drop at 1.8%, with Tel Aviv down 2.3%.
05Rent increased 2.6% for renewing tenants and 6.6% for new renters.
06Bank of Israel cites geopolitical uncertainty for cautious interest rate reductions.

Rent prices rose notably for both renewing and new tenants, and the Bank of Israel cited geopolitical uncertainty as a factor in monetary policy decisions.