Israeli Inflation Slows Further

Israel’s annual inflation rate eased to 1.5% in July 2026, down from 1.6% in June and below market expectations of an unchanged reading, remaining comfortably within the central bank’s 1%-3% target range. The latest reading marked the lowest inflation rate since May 2021, as price pressures moderated across several categories. Inflation slowed for food, including vegetables (1.4% vs 1.6%), housing (3.9% vs 4.2%), dwelling maintenance (1.6% vs 1.8%), health (1.6% vs 1.8%), and education, culture and entertainment (1.3% vs 1.4%). Meanwhile, deflation deepened for transport (-0.4% vs -0.3%), furnishings (-4.1% vs -3.7%), and clothing and footwear (-6.3% vs -5.9%). On a monthly basis, consumer prices rose 0.3%, following a flat reading in June.






