FX.co ★ Israel Inflation Rate Steady at 1.9% in May

Israel’s annual inflation rate was 1.9% in May 2026, unchanged for the third consecutive month, below market expectations of 2%, and within the Bank of Israel’s 1%–3% target range for the tenth month in a row. The main upward pressures came from housing (4.0% vs. 3.3% previously) and from education, culture, and entertainment (1.5% vs. 1.4%). At the same time, inflation moderated in several categories, including food, particularly vegetables (2.6% vs. 2.8%), health (1.6% vs. 1.7%), and transport and communications (0.8% vs. 0.9%). Deflation intensified in household equipment (-3.6% vs. -3.2%), while clothing and footwear prices remained sharply lower (-6.7%). On a monthly basis, consumer prices fell 0.3% in May, reversing a 1.2% increase in April.