Annual inflation in Israel falls below 2%

Inflation credit: Shutterstock
Inflation credit: Shutterstock

Inflation in Israel is at its lowest rate since 2021, after the January Consumer Price Index fell more heavily than expected, but home prices continued to rise.

Israel’s Consumer Price Index (CPI) fell 0.3% in January 2026 from the previous month, according to Central Bureau of Statistics figures released today. Economists had expected a 0.2% fall. Over the past 12 months, the index has risen 1.8%, below the middle of the Bank of Israel’s annual target range for inflation of 1%-3%. This is the lowest inflation rate for four and a half years.

There were significant falls in January in prices of clothing and footwear, down 3.9%; transport down 2.8%, and culture and entertainment down 0.7%.

The fresh fruit and vegetables item rose 0.8%, health rose 0.7%, and rents rose 0.3%.

Home prices rise after eight months of falls

Home price rose by 0.8% in November-December 2025, according to the Central Bureau of Statistics, compared with October-November 2025. In comparison with the same period in 2024, the rise in much smaller, at 0.4%.

For eight consecutive months from March 2025 the Central Bureau of Statistics reported a decline in home prices. The cumulative decline in that period was 2.8%. But for the past two consecutive months, home prices have risen by 0.7% and 0.8%.

Prices in Tel Aviv rose by 2% between October November 2025 and November-December 2025. In the south prices rose 1%, in Jerusalem prices rose 0.4%, in the north prices rose 0.4%, in Haifa prices rose 0.3% and in the central region prices were unchanged.

Published by Globes, Israel business news - en.globes.co.il - on February 15, 2026.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2026.

Inflation credit: Shutterstock
Inflation credit: Shutterstock
Twitter Facebook Linkedin RSS Newsletters גלובס Israel Business Conference 2018