According to the Central Bureau of Statistics, the CPI declined by 0.3% in January 2026 compared with the previous month. Economists had expected a smaller decline of 0.2%. Over the past 12 months, inflation reached 1.8%, placing it within the Bank of Israel’s target range of 1% to 3% and marking the lowest inflation rate since 2021.

Several categories saw noticeable price decreases in January. Clothing and footwear prices fell 3.9%, transportation dropped 2.8%, and culture and entertainment declined 0.7%.

At the same time, some everyday costs moved higher. Fresh fruit and vegetable prices increased 0.8%, healthcare rose 0.7%, and rental prices climbed 0.3%.

While overall inflation eased, housing prices showed signs of strengthening. According to the Central Bureau of Statistics, home prices increased by 0.8% in November–December 2025 compared with the previous two months.

This follows a period of declines earlier in the year. From March 2025, home prices fell for eight consecutive months, with a total drop of about 2.8%. However, prices have now risen for two months in a row, increasing by 0.7% and 0.8%.

Regional data shows that Tel Aviv recorded the largest increase, with prices rising 2% during the period. Prices also rose in the south by 1%, while Jerusalem and the north each saw increases of 0.4%. Haifa experienced a smaller rise of 0.3%, and prices in the central region remained unchanged.

These latest figures suggest inflation pressures are easing while the housing market shows early signs of renewed activity.

Source: Based on reporting by Ram Mori and Maya Levin, Globes – Israel Business News, February 15, 2026.
https://en.globes.co.il/en/article-annual-inflation-in-israel-falls-below-2-1001535117