Inflation unexpectedly falls sharply, home prices fall

Inflation credit: Shutterstock

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Annual inflation in Israel has fallen to 1.1%, its lowest level in five and a half years, the Central Bureau of Statistics reports.

Israel’s Consumer Price Index (CPI) fell by 0.1% in October in comparison with September 2026, the Central Bureau of Statistics reported this evening. In the twelve months to the end of October, the CPI rose 1.1%. The consensus analysts’ estimate had been for a rise of 0.2-0.4% in October.

There were notable price falls in October in fresh fruit, which fell 2.8%, transport, which fell 1.4% and housing services which fell 0.5%. Prominent price rises were in clothing and footwear, which rose 4.1% and fresh vegetables which rose 3.5%.

Home prices continue to fall

Home prices declined for the second successive month. The Home Price Index (which is not part of the CPI) fell by 0.2% in August-September in comparison with July-August 2026. Prices of new homes fell by 0.7%. Year-on-year, prices have fallen 1.5%.

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