Israel's Consumer Price Index rose 0.3% in July 2026 compared with June, driven largely by higher transportation and leisure costs, while annual inflation stood at 1.5%, according to data published by the Central Bureau of Statistics (CBS).
Israel's consumer prices rose 0.3% in July; annual inflation at 1.5%
Israel's Consumer Price Index rose 0.3% in July 2026 compared with June, driven largely by higher transportation and leisure costs, while annual inflation stood at 1.5%, according to data published by the Central Bureau of Statistics (CBS).
Among the index's main components, transportation prices rose 1.4% and culture and entertainment increased 1.1%, both attributed largely to seasonal summer demand. Clothing and footwear prices fell 4.6%, fresh fruit and vegetable prices declined 3.5%, furniture and household equipment fell 0.7%, and miscellaneous goods and services fell 0.4%.
In the rental market, tenants who renewed an existing lease saw rents increase 2.6% on an annual basis, while new tenants — those moving into apartments vacated by a previous tenant — faced an increase of 4.7%, according to CBS. The bureau said these figures approximate the annual change in rents for the two groups, since most rental agreements remain unchanged during the term of the lease.
The Manufacturing Output Price Index for the domestic market fell 1.2% in July, driven mainly by a 12% drop in prices for refined petroleum products, alongside decreases in basic metals and furniture. Excluding fuels, the index was unchanged from the previous month. On an annual basis, the Manufacturing Output Price Index fell 0.5%.
The CBS Home Price Index, covering both new and existing homes, rose 0.1% in the May-to-June 2026 period compared with the April-to-May 2026 period. On an annual basis, however, home prices fell 1.5% compared with May to June 2025. CBS noted that comparable annual declines were recorded in 2018 and in the second half of 2023.
By district, monthly price increases were recorded in Jerusalem, up 1.8%; Haifa, up 1.5%; the North, up 0.9%; and the South, up 0.7%. Prices fell 1% in the Central District and 0.7% in the Tel Aviv District. On an annual basis, prices fell 4.1% in the Central District, 1.8% in the Haifa District, and 1.7% in the Tel Aviv District, while rising 1.8% in the Jerusalem District, 1.6% in the Northern District, and 0.1% in the Southern District.
The New Home Price Index rose 0.5% in the May-to-June 2026 period compared with the previous period. The share of transactions involving government subsidies increased to 38.4% from 36.4% in the prior period. Excluding government-subsidized transactions, the New Home Price Index rose 0.9%. On an annual basis, new home prices fell 2%.
Over the past five years — compared with May to June 2021 — new home prices have risen 26.2%, against a 30.6% increase in prices for all homes over the same period. In the second quarter of 2026, the average home price nationwide stood at NIS 2.435 million, up 3.7% from the previous quarter and 7.9% from the same quarter last year. Among Israel's largest cities, Tel Aviv recorded the highest average home price at NIS 4.5535 million, while Beersheba recorded the lowest at NIS 1.2362 million. Average home prices rose most in Ashdod, up 11%, and Tel Aviv, up 8.4%, compared with the same quarter last year. The largest declines were in Ashkelon, down 2.4%, Bnei Brak, down 1.7%, and Netanya, down 1.7%.
- The source does not state whether the CBS or any other authority issued a forecast for inflation in the coming months.
- The source does not state the methodology or sample size underlying the Home Price Index or the rental calculations.
- The source does not provide a comparison of the July 2026 monthly CPI change with the equivalent month in prior years.
- The source does not state the total number or volume of home transactions recorded in the second quarter of 2026.
- The source does not identify whether the 38.4% share of government-subsidized new-home transactions is a record or how it compares with longer-term averages.
Read the original at The Jerusalem Post