Israeli inflation eases as consumer prices fall 0.3% and home prices keep sliding

Israel’s Consumer Price Index for May 2026 fell 0.3% from April, the Central Bureau of Statistics said Monday evening. The annual inflation rate, measured from May 2026 to May 2025, slowed to 1.9%, comfortably inside the government’s target range and easing pressure on the Bank of Israel to keep raising rates. The monthly data were mixed, with transportation down 2.7% and furniture and home equipment down 0.1%, while fresh summer fruit jumped 6.7%, clothing rose 1.9%, culture and entertainment increased 1.1%, and overall housing costs climbed 0.6%.