Israel Inflation Slows in September

Israel’s annual inflation slowed to 2.5% in September 2025, the lowest since February 2024, easing from 2.9% in the previous month and below market expectations of 2.8%. The moderation was largely driven by slower price growth in housing (4.2% vs 4.4% in August), food (0.9% vs 1.9%), education, culture and entertainment (2.8% vs 3.8%), dwelling maintenance (3.1% vs 3.3%), and health (3.0% vs 3.4%), along with a further decline in furniture and household equipment (-2.1% vs -1.5%). Offsetting the slowdown were faster increases in transportation and communication (2.5% vs 2.3%), while the decline in clothing and footwear (-5.9% vs -6.7%) moderated. On a monthly basis, the CPI fell 0.6% in September, reversing a 0.7% increase in August and slightly exceeding analysts’ estimates of a 0.3% decline.