FX.co ★ Israel’s Annual Inflation Cools to 1.8% in January, Easing from 2.6%

Israel’s consumer price inflation slowed in January 2026, with the year-over-year Consumer Price Index (CPI) rising 1.8%, down from 2.6% in December 2025. The latest data, updated on 15 February 2026, indicate a further easing of price pressures in the Israeli economy.

Both figures are calculated on a year-over-year basis: the December reading compared price changes to December a year earlier, while the January figure reflects the change versus January of the previous year. The moderation from 2.6% to 1.8% suggests that inflation is moving further away from recent highs and could influence expectations around monetary policy and financial market pricing.

With inflation now comfortably below the previous month’s pace, investors and policymakers will be watching upcoming releases to gauge whether this downtrend in annual CPI persists and how it may shape Israel’s broader economic outlook in 2026.