FX.co ★ Israel Inflation Hits 3-Month High

In April 2025, Israel's annual inflation rate climbed to 3.6%, up from 3.3% in March, surpassing the market's anticipated 3.2%. The acceleration was primarily driven by faster price increases in the transport and communication sectors, which rose from 1.1% to 2.3%, and in the vegetables and fruit category, which grew from 2.4% to 3.9%. This escalation was somewhat counterbalanced by moderating inflation in food prices excluding vegetables and fruit, which slightly decreased from 4.8% to 4.7%, and a more pronounced deflation in clothing and footwear, which fell from -2.2% to -2.6%. On a month-to-month basis, consumer prices surged by 1.1% in April, marking the most significant monthly rise since July 2022, notably above the forecasted 0.6% increase and following a 0.5% rise in March.