Summer demand pushes prices up 0.3%, including rent, transportation costs, statistics bureau says

Israel's Consumer Price Index (CPI) increased by 0.3% in July compared to June, driven primarily by seasonal summer demand, which led to a 1.4% rise in transportation costs and a 1.1% increase in culture and entertainment prices. Annual inflation reached 1.5%. Rental costs continued to climb, with new tenants experiencing a 4.7% increase, while those renewing leases saw a 2.6% rise. Conversely, prices for clothing, footwear, fresh produce, furniture, and household equipment declined.

• The Manufacturing Output Price Index for the domestic market fell 1.2% in July, mainly due to a 12% drop in refined petroleum product prices.
• The Home Price Index rose 0.1% from May to June 2026 but decreased 1.5% annually compared to the same period last year.
• Average home prices nationwide reached NIS 2.435 million in the second quarter of 2026, a 7.9% increase from the previous year.
• Over the past five years, new home prices have risen 26.2%, and all home prices have increased by 30.6%.