Israel Inflation Rate Unexpectedly Slows in March

Israel's annual inflation rate stood at 1.9% in April 2026, unchanged from March and staying within the Bank of Israel’s 1%–3% target band for nine consecutive months. Prices slowed further for housing (3.3% vs 3.8% in March) and health (1.7% vs 1.9%), while decreasing for clothing and footwear (-6.7% vs -7.8%) and furniture and household equipment (-3.2% vs -3.9%). Conversely, stronger increases were seen for some CPI items, including miscellaneous goods & services (3.8% vs 3.5%); food, including vegetables & fruits (2.8% vs 2.5%); education, culture and entertainment (1.4% vs 0.7%) and transport & communications (0.9% vs 0.7%). On a monthly basis, the CPI rose by 1.2%, the most since April 2008, accelerating from a 0.4% increase in March.

Israel's annual inflation rate eased to 1.9% in March 2026 from 2% in the prior month, against analysts' forecasts of 2.1%. It has remained within the Bank of Israel’s 1%–3% target band for eight consecutive months. Softer price growth was seen for housing (3.8% vs 4.2% in February); miscellaneous goods & services (3.5% vs 3.9%); health (1.9% vs 2.1%); education, culture and entertainment (0.7% vs 1.3%). At the same time, prices continued to decline for clothing & footwear (-7.8% vs -7.8%). Conversely, faster increases were recorded for food, including vegetables & fruits (2.5% vs 2.3%) and transport & communications (0.7% vs 0.4%). On a monthly basis, the CPI went up by 0.4%, after a 0.2% increase in the previous month.

Israel's annual inflation rate edged up to 2% in February 2026, up from 1.8% in January. The reading fell mid-point of the Bank of Israel's 1%-3% target, remaining in the range for the seventh consecutive month. Price increases strengthened slightly for food (0.3% versus 0.1%) and housing (0.3% versus 0.1%), while rebounding for education, culture and entertainment (0.5% versus -0.4%) and transport and communication (0.3% versus -2.5%), and slowing for dwelling maintenance (0.3% versus 0.6%). Meanwhile, deflation took place for health (-0.1% versus 0.7%), softened for clothing and footwear (-2.4% versus -3.9%) and deepened for furnishings and household equipment (-0.2% versus -0.1%). On a monthly basis, inflation rebounded to 0.2%, up from a decline of 0.3% in the previous month.