Israel's Inflation Drops to 1.6% in June with Housing Prices Falling
Translated & summarized from Ynet by baba
In June 2025, Israel's inflation rate fell to 1.6%, the lowest since 2021, with housing prices dropping 1%. Despite this, no interest rate cuts are expected soon.
The story in 6 lines · by baba
- Israel's annual inflation rate dropped to 1.6% in June 2025, the lowest since 2021.
- Consumer prices in June remained stable, rising only 0.3% compared to June 2024.
- Housing prices declined by 1% during June 2025.
- Prices rose in culture and entertainment, housing, health, and food sectors.
- Significant price drops occurred in fresh produce, clothing, transportation, and home furnishings.
- No further interest rate reductions are anticipated by the Bank of Israel soon.
Israel's consumer price index (CPI) for June 2025 remained unchanged compared to the previous month. However, since the CPI rose by only 0.3% in June 2024, the annual inflation rate significantly decreased to 1.6%, marking the lowest inflation level since 2021. Despite this decline, the Bank of Israel is not expected to lower interest rates in the near future.
Housing prices saw a notable drop of 1% in June. Price increases were recorded in several sectors: culture and entertainment rose by 1.0%, housing costs increased by 0.7%, health expenses went up by 0.6%, and food prices grew by 0.4%. Conversely, significant price decreases occurred in fresh vegetables and fruits, which fell by 5.2%, clothing and footwear dropped by 2.7%, transportation costs declined by 0.7%, and furniture and home equipment prices decreased by 0.5%.
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