Israel's Consumer Price Index Drops Sharply in September
Translated & summarized from NEWSru Israel by baba
Israel's Consumer Price Index decreased by 0.5% in September 2026, exceeding analyst expectations for a smaller drop. Annual inflation rose to 1.6% due to a larger decrease in the previous year. The inflation data will influence the Bank of Israel's interest rate decision later in October. The decline was largely driven by cheaper overseas travel and hotel stays, while fresh vegetable prices increased.
The story in 6 lines · by baba
- Israel's CPI fell 0.5% in September 2026, more than analysts predicted.
- Annual inflation in Israel rose to 1.6% as of September 2026.
- Overseas travel costs dropped 7.3%, significantly impacting the CPI.
- Hotel prices decreased by 14.2% in September.
- The inflation data is a key factor for the Bank of Israel's interest rate decision.
- Fresh vegetable prices increased by 6.6% in September.
Israel's Central Bureau of Statistics reported on Thursday, October 15, that the Consumer Price Index (CPI) fell by 0.5% in September 2026 compared to August. This decline was steeper than the 0.2% to 0.3% predicted by analysts. Annual inflation, however, increased by 0.1% to 1.6%. This rise is attributed to a larger CPI decrease of 0.6% recorded in September 2025. The inflation figures are expected to be a significant factor in the Bank of Israel's upcoming decision on interest rates, scheduled for late October. The current interest rate stands at 3.25%. The most substantial contributor to the CPI's monthly drop was a 7.3% decrease in the cost of overseas travel, which lowered the index by 0.36%. Additionally, prices for hotels decreased by 14.2%, and costs for culture and entertainment fell by 2.7%, while transportation prices dropped by 2.5%. Conversely, fresh vegetable prices saw the most significant increase, rising by 6.6%.
