Israeli inflation eases as consumer prices fall 0.3% and home prices keep sliding
Israel’s May 2026 Consumer Price Index fell 0.3%, bringing annual inflation to 1.9%. At the same time, new data showed apartment prices and land prices continuing to decline.
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- May 2026 CPI fell 0.3%, lowering annual inflation to 1.9%.
- Transportation prices dropped 2.7%, while fresh fruit rose 6.7%.
- Overall apartment prices fell 0.3% in March-April 2026 transactions.
- New-home prices fell 3.9% year on year, or 0.7% in the free market.
- Residential land prices fell 4.9% in 2025, led by detached-house plots.
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%.
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