Israel Inflation Rate at 2021-Lows

2026-02-16 18:09 By Larissa Caser 1 min. read

Israel's annual inflation rate fell to 1.8% in January 2026, its lowest level since June 2021, from 2.6% in December.

The reading fell toward the mid-point of the Bank of Israel's 1%-3% target, remaining in the range for the sixth consecutive month.

Deflation took place for clothing and footwear (-7.7% vs -8.0% in December 2025) and furnishings and household equipment (-4.0% from -3.3%.) Meanwhile, price growth slowed notably in transport and communication (0.2% vs. 2.7%), education, recreation and culture (1.4% vs. 2.0%), and dwelling maintenance (1.8% vs. 3.3%).

Upward pressure stemmed mainly from higher prices for housing (3.8% vs. 3.7%), fruits and vegetables (2.3% vs. 2.0%), and health (2.3% vs. 2.2%).

On a monthly basis, consumer prices fell by 0.3%.



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Israel Inflation Rate at 2021-Lows
Israel's annual inflation rate fell to 1.8% in January 2026, its lowest level since June 2021, from 2.6% in December. The reading fell toward the mid-point of the Bank of Israel's 1%-3% target, remaining in the range for the sixth consecutive month. Deflation took place for clothing and footwear (-7.7% vs -8.0% in December 2025) and furnishings and household equipment (-4.0% from -3.3%.) Meanwhile, price growth slowed notably in transport and communication (0.2% vs. 2.7%), education, recreation and culture (1.4% vs. 2.0%), and dwelling maintenance (1.8% vs. 3.3%). Upward pressure stemmed mainly from higher prices for housing (3.8% vs. 3.7%), fruits and vegetables (2.3% vs. 2.0%), and health (2.3% vs. 2.2%). On a monthly basis, consumer prices fell by 0.3%.
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