Israel’s annual inflation rate eased to 1.5% in July 2026, down from 1.6% in June, remaining comfortably within the central bank’s 1%–3% target range. This was the lowest rate of inflation since May 2021, reflecting a broad moderation in price pressures.
Inflation slowed across several key categories, including food—particularly vegetables (1.4% vs. 1.6%)—as well as 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%).
At the same time, deflation intensified in other sectors: 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 increased by 0.3% in July, following a flat reading in June.