Inflation in Israel falls to five-year low

Israel’s Consumer Price Index (CPI) was unchanged in June 2026 from the previous month, as expected, according to Central Bureau of Statistics figures released today. Over the past 12 months, the index has risen 1.6%, within the Bank of Israel annual target range for inflation of 1%-3%, and down from 1.9% in the 12 months to the end of May 2026..

There were significant falls in June in prices of fresh fruit and vegetables, down 5.2%, clothing and footwear down 2.7% transport, which fell 0.7% and household furniture and equipment, which fell 0.5%, fuel, which fell 3.1%, and overseas vacations, which fell 1.6%.

There were price rises in culture and entertainment, which rose 1%, housing maintenance, which rose 0.7%, healthcare, which rose 0.6%, and food, which rose 0.4%.

Home prices fall strongly

The Central Bureau of Statistics has also published the change in home prices (which are not part of the general CPI) between April and May. On average, prices fell 1% after rising 0.3% the previous month. Prices in Tel Aviv over this period fell 23% and in Jerusalem by 1.8%. Prices in Haifa fell 0.5% and in the northern region by 0.3%. Prices in the central and southern regions were unchanged.

In comparison with the same period in 12 months ago – April-May 2026 compared with April-May 2025 – home prices have fallen 2%.

Published by Globes, Israel business news – en.globes.co.il – on July 15, 2026.

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