The Consumer Price Index rose 0.7% in August 2026 compared with July, bringing inflation over the past 12 months to 1.5%, according to data released Tuesday.
The sharpest increases were recorded in fresh vegetables, up 2.9%; transportation, up 2.7%; culture and entertainment, up 2%; and housing, up 0.6%.
But not all prices rose. Fresh fruit became 2% cheaper in August, while clothing prices fell 0.8%, food prices dropped 0.5%, and furniture and household equipment declined 0.3%.
Rents also continued to rise. Tenants renewing their leases saw an average increase of 2.6%, while rents rose 4.4% in apartments where a new tenant replaced the previous one. These figures approximate annual rent increases, as most tenants do not see changes during the term of their lease.
The housing market remained mixed. Home transaction prices in June-July rose 0.2% from May-June, while new-home prices increased 0.5%. Prices rose 0.7% in the Tel Aviv District, 0.3% in the Central District and 0.1% in the South, but fell 0.4% in Jerusalem, 0.3% in Haifa and 0.1% in the North.
Compared with the same period last year, home prices fell 1.2% in June-July, while new-home prices declined 0.8%. Prices fell 3.2% in the Central District, 2.4% in Haifa, 0.9% in Tel Aviv and 0.6% in the South. Jerusalem recorded a 1.1% increase and the North 1%.
Second-hand home prices also fell 1.2% in the second quarter of 2026 compared with the first quarter, with declines of 2.9% in Jerusalem and 2% in Tel Aviv.
Construction costs fell 0.1% in July but have risen 2.3% since the beginning of the year and 3.5% over the past 12 months. Labor costs rose 5.4% over the same period.
Industrial prices for the domestic market rose 2.7% in August, driven largely by a 28.3% surge in refined petroleum product prices. Furniture prices rose 1.1%, while pharmaceutical and metal product prices each fell 1.1% and clothing product prices dropped 7.6%.
The mining and quarrying price index fell 0.8% in August and is down 7% over the past year.
In the second quarter, industrial export prices, including mining and quarrying, fell 1.2%. Prices for cleaning services rose 3.6%, accounting 3.3%, employment services 2.4% and advertising 2%, while programming, computer consulting and related services fell 3.3%.