FX.co ★ Israel Inflation Rate Edges Up

Israel’s annual inflation rate edged up to 1.6% in September 2026, from 1.5% in August, remaining comfortably within the central bank’s 1%–3% target range. Price pressures strengthened in several categories, including food — particularly vegetables (1.6% vs. 1.0%) — as well as dwelling maintenance (1.5% vs. 1.4%) and education, culture, and entertainment (1.0% vs. 0.8%).

At the same time, deflation intensified in furnishings (-4.3% vs. -3.9%) and in clothing and footwear (-5.7% vs. -5.2%). Inflation in housing was steady at 3.8%, while it eased in transport and communication (0.4% vs. 0.6%) and in health (1.3% vs. 1.5%). On a monthly basis, consumer prices declined by 0.5% in September, reversing the 0.7% increase recorded in August.