Annual inflation in Israel falls below 2%

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.