Israel's Consumer Price Index (CPI) has experienced a shift from a period of deflation in November to stabilization in December, with the latest figures showing a 0.0% change. According to the data updated on January 15, 2026, the CPI's previous reading in November reflected a decrease of 0.5% from the month before, indicating a significant economic adjustment as it enters the new year.
The shift from a negative to a neutral CPI suggests that the downward pressures on consumer prices have ceased, potentially signaling a period of economic stability. As the month-over-month comparison indicates, the current indicator pausing at 0.0% is a marked improvement from the previous month's negative territory. This stabilization could imply a more balanced economic environment, although further data in the coming months will be necessary to confirm any long-term trends.
Economists and policymakers will be watching closely to see whether this leveling off in consumer prices leads to increased consumer confidence and spending, or if more systemic economic adjustments will be needed to maintain stability in Israel's markets. The transition from a negative to neutral CPI presents both challenges and opportunities for the Israeli economy as it charts a course for 2026.
