Israel’s consumer price index (CPI) slipped into negative territory in May 2026, signaling a sharp reversal in short-term inflation dynamics. Month-over-month, prices fell by 0.3% in May, compared with a 1.2% increase recorded in April 2026, according to data updated on 15 June 2026.
The figures highlight a notable cooling in price pressures over just one month. While April’s reading reflected a strong upward move in consumer prices versus March, May’s decline points to a sudden moderation—and, on a monthly basis, outright contraction—in the CPI. The data are based on a month-over-month comparison, where the current figure measures the change in May relative to April, and the previous figure captures April’s change relative to March.
This swing from 1.2% to -0.3% may draw close scrutiny from policymakers and market participants, as it could signal changing demand patterns, the impact of earlier price increases, or emerging disinflationary forces in parts of the Israeli economy.
