Contrary to forecasts, consumer price index fell, inflation eased, and home prices dropped across Israel
Notable price declines were recorded in several areas, including fresh fruit and transportation, compared with clothing and footwear, and fresh vegetables, which rose
A shift in trend: The Consumer Price Index, published Sunday evening, showed a 0.1% decline in October 2026 compared with September 2026. This marks a change, as the index rose by 1.1% over the past 12 months (October 2026 compared with October 2025).
Meanwhile, housing prices in Israel continue to fall.
Notable price decreases were recorded in several categories, including fresh fruit, which fell by 2.8%; transportation, which fell by 1.4%; and owner-occupied housing services, which fell by 0.5%.
Notable price increases were recorded in clothing and footwear, which rose by 4.1%; fresh vegetables, which rose by 3.5%; home maintenance, which rose by 0.4%; and furniture and household equipment, which rose by 0.3%.
The data also show that rents rose by 2.8% for tenants who renewed their leases and by 5.5% for new tenants (apartments in the sample where the tenant changed). It should be noted that these rates of change approximate the annual change in rent for these groups.
This is because rent has not changed over the past year for the vast majority of tenants, who are bound by leases that set the monthly rent, usually without indexation mechanisms.
Residential Construction Input Price Index
The Residential Construction Input Price Index also increased. It rose by 0.4% in October 2026, reaching 104.4 points compared with 104.0 points in the previous month (base: July 2025 = 100.0 points). Since the beginning of the year, the index has risen by 3.2%.
Over the past 12 months (October 2026 compared with October 2025), the Residential Construction Input Price Index rose by 3.9%, driven by a 5.2% increase in labor costs.
Materials and products price index
At the same time, the materials and products price index rose by 0.1% in October 2026. Among materials and products, prices rose particularly for blocks (2.1%), mesh and cages (1.3%), and reinforcing steel (1.2%).
By contrast, prices fell for prefabricated partitions (1.2%) and ready-mix concrete (0.7%). Meanwhile, the wage index for workers employed in the industry rose by 0.5% in October 2026.
Price index of industrial output
Another figure included in the document is the price index of industrial output for the domestic market, which rose by 1.9% in October 2026 compared with September 2026. The index excluding fuels remained unchanged in October 2026.
Over the past 12 months (October 2026 compared with October 2025), the price index of industrial output for the domestic market rose by 5.1%, and the index excluding fuels rose by 0.9%.
This month, prices rose for refined petroleum products (by 16.5%) and basic metals (by 1.5%). In contrast, prices fell for clothing products (by 1.2%) and textiles (by 2.0%).
Price index for mining and quarrying
The price index for mining and quarrying for the domestic market rose by 0.9% in October 2026 compared with September 2026. Over the past 12 months (October 2026 compared with October 2025), the index fell by 4.2%.
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Housing price index
The housing price index was also published this evening, showing that home prices in Israel fell by 0.2% in August–September, while prices of new homes fell by 0.7%. The index also showed that home prices fell by an average of 1.5% year over year.
On a monthly basis, the steepest price declines were recorded in the Tel Aviv district (0.8%), the Southern district (0.6%) and the Central district (0.2%). Compared with August–September 2025, prices fell by 2.1% in the Tel Aviv district, 2% in the Central district and 1.6% in the Southern district.
In addition, according to the Central Bureau of Statistics (CBS), the average price of an apartment in Israel in the third quarter of 2026 was NIS 2,286,000—a decrease of 5.7% compared with the second quarter of the year and a decrease of 1.5% compared with the third quarter of the previous year. The Tel Aviv district has the highest average apartment price, at NIS 3.4 million, compared with NIS 1.4 million in the Northern District.
The cities that recorded particularly notable price declines in the third quarter of 2026 compared with the same quarter last year were Bat Yam (8.5%), Herzliya (7.2%), Jerusalem (5.2%), and Rehovot (4%). The most notable price increases were in Tel Aviv (12%), Netanya (8%), Holon (7.3%), and Hadera (6.2%).