Decrease in the Consumer Price Index in Israel during May

SadaNews Economy Translation - The Consumer Price Index (CPI) in Israel decreased by 0.3% in May 2026, compared to April 2026.

Over the past twelve months (May 2026 compared to May 2025), the Consumer Price Index increased by 1.9%. This was reported by the Hebrew economic newspaper Globes, translated by SadaNews Economy section.

Notable decreases were recorded in the prices of fresh vegetables by 4.9%, transportation by 2.7%, and furniture and household equipment by 0.1%.

In contrast, significant increases were observed in the prices of fresh fruits by 6.7%, clothing by 1.9%, and household appliances by 0.4%.

The prices of international air travel sharply declined by 16.9%, amid the gradual return of foreign airlines to Israel.

According to the Central Bureau of Statistics, in the first quarter of 2026, the prices of cleaning services increased by 6.1%, advertising services by 4.9%, employment services by 2.2%, accounting services by 1.6%, and legal services by 1.0%.

In contrast, the prices of management consulting services decreased by 0.3%, and computer programming, computer consulting, and related services fell by 1.2%.

It appears that rents for tenants who renewed their leases increased by 2.5%, compared to 2.6% in the previous month. For new tenants (apartments in the sample that saw a change in tenants), rents increased more significantly by 6.8%, compared to 3.6% in the previous month.

It is noted that these rates of change almost reflect the annual rate of change in rent within these categories. This is due to the fact that rent remained unchanged for the majority of tenants over the past year, due to lease agreements that set the monthly rent, often without linkage mechanisms.

According to data published by the Central Bureau of Statistics today, Monday, the Housing Price Index decreased by 0.3% in April 2026. This decline follows a price increase of 0.3% in the previous month, after two consecutive months of price decreases of 0.1% in February and January 2026.

Despite the weakness of the dollar, the construction input price index for residential buildings increased by 0.6% in May 2026, compared to an increase of 2.2% in the index since the beginning of the year.

Among materials and products, the prices of imported concrete increased (by 1.3%), sewage systems, and various materials and products (by 1.1% each), and protected area products (by 1.0%).

In contrast, the prices of other products, including concrete (by 2.2%), iron used in construction (by 1.2%), windows, and cages (by 1.0%) decreased.

The index of wages paid to workers in this sector also increased by 1.1% in May 2026.