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Israel marks lowest inflation rate in five years

General prices across the market have increased by 1.2% from January to June.

A young African man cleans vegetables at a grocery store in south Tel Aviv, on Nov. 01, 2017. Photo by Miriam Alster/Flash90.
A young African man cleans vegetables at a grocery store in south Tel Aviv, on Nov. 01, 2017. Photo by Miriam Alster/Flash90.

Israel’s Consumer Price Index has seen a 1.2% increase since the beginning of the year, marking the lowest inflation rate in the country in five years, according to data published by Israel’s Central Bureau of Statistics on Wednesday.

The data, running up to June, showed no change in the CPI rate compared to May.

Consumer prices have increased by 1.6% over the past 12 months, since June 2025.

Notable price declines were recorded in the categories of fresh vegetables and fruit (down 5.2%), clothing and footwear (down 2.7%), transportation (down 0.7%), and furniture and house equipment (down 0.5%).

Sharp declines were also seen in the prices of motor fuels, charging services and motor oils, falling by roughly 3.1%, and overseas travel, declining by roughly 1.6%, according to the CBS.

By contrast, prices in the housing sector rose by 0.7%, in culture and entertainment by one percent, health by 0.6% and food by 0.4%.

In the rental residential market, new leases registered a sharp 2.6% hike while new tenants registered a 6.6% increase in rental leases.

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