Full coverage· Economy· Updated 20:35

Food Prices Drop in Israel Despite Inflation Fears

Food prices in Israel, excluding fruits and vegetables, fell by 0.3% in the year leading up to October 2026, according to the Central Bureau of Statistics. The overall annual inflation rate dropped to 1.1%, the second-lowest among OECD countries.

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Food Prices Drop in Israel Despite Inflation Fears — Illustration by baba

What happened

01Food prices in Israel, excluding fruits and vegetables, decreased by 0.3% in the year ending October 2026.
02Israel's annual inflation rate fell to 1.1%, the second-lowest among developed OECD countries.
03The overall consumer price index saw a 0.1% decrease in October.
04Excluding housing costs, the consumer price index also dropped by 0.1% year-over-year.
05Bank of Israel Governor Amir Yaron faces a dilemma regarding interest rates due to low inflation.

This surprising data challenges public perception of rising costs and presents a dilemma for Bank of Israel Governor Amir Yaron regarding interest rates.

Translated and summarized by baba from Ynet, the latest report. Read Ynet’s original