FX.co ★ Israel Inflation Rate Quickens to 4-Month High of 2.6%

In December 2025, Israel's annual inflation rate rose to a four-month high of 2.6%, up from 2.4% in November. Despite the increase, inflation remained within the government's target range of 1% to 3% for the fifth consecutive month. Notable contributors to this upward trend included the prices of vegetables and fruit, which rose by 2% after a decline of 2.7% in November; housing costs, which increased to 3.7% from 3.3%; transport and communication expenses, which climbed to 2.7% from 1.3%; and miscellaneous items, which decreased slightly from 5.1% to 4.7%. On a monthly comparison, consumer prices stabilized in December, following a 0.5% drop the previous month. For the year 2025, the inflation rate averaged 2.6%, a decline from the 3.2% average in 2024.