Costs rose again for Israelis last month, driven by gas and flights, data shows

Sharon Wrobel is a tech reporter for The Times of Israel

Fuel prices displayed at a gas station in Tel Aviv, April 9, 2026. (Miriam Alster/FLASH90)
Fuel prices displayed at a gas station in Tel Aviv, April 9, 2026. (Miriam Alster/FLASH90)

Consumer prices increased in August, with Israelis facing higher costs for a range of goods and services, driven by a rise in fuel prices and a seasonal spike in airfares and travel costs, data published by the Central Bureau of Statistics shows.

On a monthly basis, the consumer price index (CPI) — a measure of inflation that tracks the average cost of household goods — rose by 0.7%, after increasing 0.3% in July. The August figure compared with analysts’ expectations for a spike of 0.7% to 0.9%.

The August data takes annual inflation over the past 12 months to 1.5%. Inflation remains well within the government’s target range of between 1% and 3%.

In August, notable increases were seen in the costs of fresh vegetables, which rose 2.9%, transportation rose 2.7%, and culture and entertainment increased by 2%, according to the bureau. Travel costs, including flights within Israel and abroad, rose at a faster rate, by 9%; while prices of hotel stays jumped 12%. Car fuel costs increased 7.2%.

These were offset somewhat by declines in the costs of fresh fruit, which fell 2%, as clothing fell by 0.8%, and food prices (not including vegetables and fruit) were down 0.5%.

In the real estate market, rents in lease renewals rose 2.6%, and rents in new leases soared 4.4%.

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