Flight prices hit record highs: inflation data revealed

Prices for flights abroad are returning to the center stage regarding the cost of living in Israel. The Consumer Price Index rose in July 2026 by 0.3% compared to June, but within the data, the category of flights abroad and domestic trips stands out, having become 7.5% more expensive.

The new data from the Central Bureau of Statistics aligns with the assessment presented by Yoni Fanning, chief strategist at Mizrahi-Tefahot, according to which flight prices may be a significant factor in the index during the summer. July data points to exceptional demand for flights, as the number of Israelis who flew abroad jumped by almost 40% and reached approximately 1.15 million passengers, an all-time high.

The surge in passenger numbers reflects demand created by the decrease in security tensions during the summer, following a prolonged period of lower flight volumes. However, Fanning estimates that the supply of flights has also increased, so it is possible that the sharp price increase recorded in July will moderate in August and even partially reverse.

Another category that rose sharply in July is accommodation, vacation, and trips, which became 4.1% more expensive. These increases coincide with the peak vacation and travel season.

Overall, the Consumer Price Index rose in July by 0.3% to reach 105.1 points. The index excluding fruits and vegetables rose by 0.4%, the index excluding energy rose by 0.3%, while the index excluding housing remained unchanged.

Increases were also recorded in housing categories. Housing services owned by tenants rose by 0.7%, while rent rose by 0.3%.

Looking ahead, while the July index is considered relatively moderate, forecasts for the August index point to the possibility of a much sharper rise, ranging from 0.6% to 1%. If flight prices do indeed moderate in August as Fanning estimates, this may affect the overall index picture next month.