Israel\u2019s consumer price index (CPI) for September dropped 0.6%, marking a sharper decline than expected and signaling that inflation is easing significantly. Since the index fell 0.2% in September last year, annual inflation over the past 12 months fell to 2.5% from 2.9% in the previous reading\u2014the lowest level since February 2024.<\/p>\n
Economists now expect the Bank of Israel to cut the interest rate by 0.25% in its next decision at the end of November, possibly even earlier.<\/p>\n
The steepest price drops were recorded in fresh fruit (down 3.2%), culture and entertainment (down 2.4%), transportation and communications (down 2.2%), food (down 0.5%), clothing and footwear (down 0.3%), and housing services and maintenance (down 0.2% each).<\/p>\n
In contrast, notable increases were seen in fresh vegetables (up 3.5%), rent, and healthcare services (each up 0.3%).<\/p>\n
As in previous months, airfare prices had a significant impact on the index. This time, they fell by 16% as many foreign airlines resumed operations in Israel and demand for flights dropped, pushing prices down substantially.<\/p>\n
Rent and housing prices<\/p>\n
Among renters who renewed their leases, rent rose by 2.6%, while new tenants (in apartments where there was turnover) saw rent increases of 5.3%.<\/p>\n
Israel\u2019s housing price index fell for the sixth consecutive time, completing a decline of more than 2% over the past six months. Comparing transactions made in July\u2013August 2025 with those in June\u2013July 2025, home prices dropped 0.6%.<\/p>\n
On an annual basis, the housing price index still shows a slight increase, though growth has slowed sharply in recent months. Comparing July\u2013August 2025 with the same period in 2024, prices rose only 0.7%.<\/p>\n
Between July-August 2025 and June-July 2025, housing prices rose 1% in Jerusalem, while declines were recorded in the North (0.2%), Haifa (0.4%), the Central District (1.8%), Tel Aviv (0.9%), and the South (0.8%). Compared with the same period a year earlier, prices increased in the North by 8.4%, in Jerusalem by 4.2%, in Haifa by 3.7%, and in the South by 2.8%, while they fell 2.9% in the Central District and 1.5% in Tel Aviv.<\/p>\n
New apartment market<\/p>\n
Prices for new apartments fell 1.2% in July\u2013August compared with the previous two-month period. The share of government-supported transactions rose from 31.7% to 39.4%. Excluding those, new apartment prices dropped 0.2%.<\/p>\n
Year over year, new apartment prices rose just 0.5%, underscoring a sharp cooling in Israel\u2019s once overheated housing market.<\/p>\n","protected":false},"excerpt":{"rendered":"Israel\u2019s consumer price index (CPI) for September dropped 0.6%, marking a sharper decline than expected and signaling that…\n","protected":false},"author":3,"featured_media":307036,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[64,79,67,132,68],"class_list":{"0":"post-307035","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-business","9":"tag-economy","10":"tag-united-states","11":"tag-unitedstates","12":"tag-us"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/115381740733564853","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/307035","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=307035"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/307035\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/307036"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=307035"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=307035"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=307035"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}