Israel Inflation Rate at 2021-Lows

2026-07-15 16:51 By Larissa Caser 1 min. read

Israel's annual inflation rate eased to 1.6% in June 2026, the lowest since May 2021, down from 1.9% in May and in line with the central bank's 1%-3% target.

Price pressures softened for food, including vegetables (1.6% vs. 2.6%), and education, culture, and entertainment (1.4% vs. 1.5%), while transportation and communication prices fell 0.3%, reversing a 0.8% increase in the previous month.

Deflation deepened slightly for furnishings and household equipment (-3.7% vs. -3.6%), while inflation for dwelling maintenance was unchanged at 1.8%.

In contrast, housing inflation accelerated to 4.2% from 4%, and health costs rose 1.8% after a 1.6% increase.

Meanwhile, deflation for clothing and footwear eased to 5.9% from 6.7%.

On a monthly basis, consumer prices were unchanged in June, following a 0.3% decline in May.



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Israel Inflation Rate at 2021-Lows
Israel's annual inflation rate eased to 1.6% in June 2026, the lowest since May 2021, down from 1.9% in May and in line with the central bank's 1%-3% target. Price pressures softened for food, including vegetables (1.6% vs. 2.6%), and education, culture, and entertainment (1.4% vs. 1.5%), while transportation and communication prices fell 0.3%, reversing a 0.8% increase in the previous month. Deflation deepened slightly for furnishings and household equipment (-3.7% vs. -3.6%), while inflation for dwelling maintenance was unchanged at 1.8%. In contrast, housing inflation accelerated to 4.2% from 4%, and health costs rose 1.8% after a 1.6% increase. Meanwhile, deflation for clothing and footwear eased to 5.9% from 6.7%. On a monthly basis, consumer prices were unchanged in June, following a 0.3% decline in May.
2026-07-15
Israel Inflation Rate Steady at 1.9% in May
The annual inflation rate in Israel stood at 1.9% in May 2026, remaining unchanged from the last two months, bellow market expectations of a 2% increase and staying within the Bank of Israel’s 1%–3% target band for ten consecutive months. Upward price pressures were mainly due to housing (4.0% vs 3.3%) and education, culture and entertainment (1.5% vs 1.4%). Meanwhile, inflation eased in several categories, including food, including vegetables (2.6% vs 2.8%), health (1.6% vs 1.7%) and transport & communications (0.8% vs 0.9%). Deflation deepened for household equipment (-3.6% vs -3.2%), while clothing and footwear prices remained lower (-6.7%). On a monthly basis, consumer prices declined 0.3% in May, reversing a 1.2% rise in the previous month.
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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.
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