Israel’s annual inflation rate was 1.5% in August 2026, unchanged from July and slightly below the market forecast of 1.6%. The rate remains comfortably within the central bank’s 1%–3% target band and is now at its lowest level since May 2021.
By category, price growth picked up in transport (0.6% vs. -0.4% previously), while deflation moderated in furnishings (-3.9% vs. -4.1%) and in clothing and footwear (-5.2% vs. -6.3%). At the same time, inflation eased in several components, including food and vegetables (1% vs. 1.4%), housing (3.8% vs. 3.9%), dwelling maintenance (1.4% vs. 1.6%), health (1.5% vs. 1.6%), and education, culture, and entertainment (0.8% vs. 1.3%).
On a monthly basis, consumer prices increased by 0.7%, quickening from a 0.3% rise in the previous month.
