Israel’s Consumer Price Index (CPI) fell by 0.5% in September in comparison with August 2026, the Central Bureau of Statistics reported this evening. In the twelve months to the end of September, the CPI rose 1.6%. The consensus analysts’ estimate was for a fall of 0.3-0.4% in September, and hence a twelve-month inflation rate of 1.7-1.8%.
There were notable falls in September in the culture and entertainment item, down 2.7%, in transport, which fell 2.5%, clothing and footwear, which fell 0.9%, and food, furniture, and home equipment, each of which fell by 0.4%. Prominent rises were in fresh produce, up 6.6%, education services, up 0.8%, and rents, up 0.4%.
Home prices fall
After two months of slight rises, home prices resumed their decline. The Home Price Index (which is not part of the CPI) fell by 0.6% in July-August in comparison with June-July 2026. Prices of new homes fell by 0.4%. Excluding government subsidized transactions, prices fell by 0.8%.
In the northern district, the fall in home prices was 1.5%. In Tel Aviv it was 0.9%, and in the central district it was 0.7%. Prices in Jerusalem fell by 0.3%, and in the southern district by 0.1%.
Year-on-year, prices fell by 2.7% in the central district, by 1.9% in Tel Aviv, by 1.5% n the southern district, by 1.4% in Haifa, by 0.8% in the northern district, and by 0.2% in Jerusalem.
Over the five years to July-August 2026, prices of all homes rose by 26.8%, and prices of new homes rose by 24.3%.
Published by Globes, Israel business news - en.globes.co.il - on October 15, 2026.
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