Israel Inflation Rate Hits 4-Year Low of 2.4% as Anticipated

The annual inflation rate in Israel picked up to a four-month high of 2.6% in December 2025 from 2.4% in the prior month. Still, inflation stayed within the government’s annual target range of 1% to 3% for the fifth month running. Main upward pressure came from prices of vegetables & fruit (2% vs -2.7% in November); housing (3.7% vs 3.3%); transport & communication (2.7% vs 1.3%) and miscellaneous (4.7% vs 5.1%). On a monthly basis, consumer prices were flat in December, after a 0.5% decrease in the previous month. Inflation rate averaged 2.6% in 2025, down from 3.2% in 2024.

The annual inflation rate in Israel ticked down to a four-year low of 2.4% in November 2025 from 2.5% previously, matching market forecasts. The reading stayed within the government’s annual target range of 1% to 3%. Prices slowed further for housing (3.3% vs 3.6% in October); miscellaneous goods & services (5.1% vs 5.2%) and transport and communication (1.3% vs 1.5%). Moreover, decreases were seen for clothing and footwear (-7.3% vs -6.4%); vegetables and fruit (-2.7% vs -5.1%) and furniture and household (-2.8% vs -1.8%). On a monthly basis, the CPI decreased by 0.5% in November, after a similar increase in October, in line with market estimates.

Israel’s annual inflation stood at 2.5% in October 2025, the lowest since February 2024, unchanged from September, matching market expectations. The figure remained within the government’s annual target range of 1% to 3%. Prices continued to slow for housing (3.6% vs 4.2% in September); education, culture and entertainment (2% vs 2.8%) and transport and communication (1.5% vs 2.5%). Additionally, declines were seen for clothing and footwear (-6.4% vs -5.9%); vegetables and fruit (-5.1% vs -8.4%) and furniture and household (-1.8% vs -2.1%). Meanwhile, prices accelerated for food (2.4% vs 0.9%) and miscellaneous goods & services (5.2% vs 4.8%). On a monthly basis, the CPI rose by 0.5% in October, after a 0.6% decrease in September and compared with analysts' estimates of a 0.4% rise.