Summer demand pushes prices up 0.3%, including rent, transportation costs, statistics bureau says
Transportation prices rose 1.4%, and culture and entertainment rose 1.1%, while footwear fell 4.6%, and fresh fruit and vegetable prices declined 3.5%.
In July, Israel's Consumer Price Index experienced a rise of 0.3% compared to June, driven by heightened summer demand and increased transportation and leisure expenses. Despite this, housing costs continued to escalate.
Transportation prices surged by 1.4%, while cultural and entertainment expenses increased by 1.1%, largely attributable to seasonal summer demand. Conversely, clothing and footwear prices dropped by 4.6%, and fresh fruit and vegetable prices declined by 3.5%. Furniture and household equipment declined by 0.7%, and miscellaneous goods and services fell by 0.4%.
Rents, too, continued their upward trend, particularly for tenants signing new leases. Existing leaseholders witnessed a 2.6% rent hike, while new tenants moving into apartments previously occupied by others faced a more substantial increase of 4.7%. The Central Bureau of Statistics (CBS) noted these figures offer an estimate of the annual change in rents for both lease renewal and new tenant categories, as most rental agreements remain unchanged throughout the lease term.
In the industrial sector, the Manufacturing Output Price Index for the domestic market declined by 1.2% in July, primarily due to a 12% drop in refined petroleum product prices and reductions in basic metals and furniture. Excluding fuels, the index remained unchanged from the prior month. On an annual basis, the Manufacturing Output Price Index decreased by 0.5%.
Home prices saw a slight rise of 0.1% from May to June 2026 compared to April to May 2026. On an annual basis, however, home prices decreased by 1.5% compared to May to June 2025, continuing a pattern of falling home prices observed in previous years, such as 2018 and the second half of 2023. District-wise, monthly price increases were observed in Jerusalem (1.8%), Haifa (1.5%), the North (0.9%), and the South (0.7%), while prices fell in the Central District (1%) and Tel Aviv District (0.7%).
Year-over-year, prices declined in the Central, Haifa, and Tel Aviv Districts (4.1%, 1.8%, and 1.7%, respectively) but rose in the Jerusalem (1.8%), Northern (1.6%), and Southern Districts (0.1%).
Written by urgent.news from Jerusalem Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
