FX.co ★ Israel Inflation Rate Steady at Over 1-1/2-Year Low of 2.5%

In October 2025, Israel's annual inflation rate reached 2.5%, marking the lowest level since February 2024, and it remained stable compared to September. This figure aligns with market predictions and falls within the government's target range for annual inflation, which is set between 1% and 3%. A deceleration in price increases was noted within several sectors: housing (3.6% down from 4.2% in September), education, culture, and entertainment (2% down from 2.8%), and transport and communication (1.5% down from 2.5%). Moreover, further reductions were recorded in clothing and footwear (-6.4% compared to -5.9%), vegetables and fruit (-5.1% compared to -8.4%), and furniture and household items (-1.8% compared to -2.1%). In contrast, prices for food increased (2.4% up from 0.9%), as did those for miscellaneous goods and services (5.2% up from 4.8%). On a month-on-month basis, the Consumer Price Index (CPI) rose by 0.5% in October, following a 0.6% decline in September, which was higher than analysts' estimates of a 0.4% increase.