Inflation moderates: Consumer Price Index fell by 0.5% in September

The Consumer Price Index fell by 0.5% in September, and the annual inflation rate moderated to 1.6%. Declines were recorded in culture and entertainment (2.7%), transportation (2.5%), and food (0.4%), while fresh vegetables became more expensive by 6.6%. Housing prices fell by 0.6% in the month and by 1.8% annually, but new tenants paid 5.3% more. Construction costs rose by 3.6% annually.

The Consumer Price Index fell by 0.5% in September 2026 compared to August, according to the Central Bureau of Statistics. The annual inflation rate moderated to just 1.6%, a figure indicating a slowdown in the pace of price increases in the economy. The most notable declines were in culture and entertainment (2.7%), transportation (2.5%), and clothing and footwear (0.9%). Food and furniture prices also fell by 0.4% each. On the other hand, fresh vegetables surged by 6.6%, education services became more expensive by 0.8%, and rent rose by 0.4%. In the housing market, prices fell by 0.6% in July-August compared to June-July, and by 1.8% annually. The sharpest decline was recorded in the Northern District (1.5%), followed by Tel Aviv (0.9%) and the Central District (0.7%). In Haifa, there was actually an increase of 0.4%. Tenants who renewed a lease faced a 2.4% increase in rent, while new tenants paid 5.3% more. Meanwhile, the residential construction input index rose by 0.1% in September, completing an annual increase of 3.6%, partly due to a 5.3% rise in wages in the industry and a 3.1% increase in iron prices for construction. The Producer Price Index for industry rose by 0.8% in September.