Israel's Consumer Price Index (CPI) has unexpectedly turned negative, as the latest data for May 2025 indicates a 0.3% decrease compared to the previous month. The figures released on June 15, 2025, reveal a stark contrast to the 1.1% increase recorded in April, signaling a potential shift in economic conditions.
The month-over-month analysis highlights a significant drop from April's positive growth. This changing trend may prompt economic experts to examine underlying factors contributing to the deflationary pressure, such as shifts in consumer spending, international trade dynamics, or changes in key sectors within the economy.
Stakeholders and policymakers are now paying closer attention to these developments, considering the implications for monetary policy adjustments and overall economic health. As the Israeli economy grapples with this unexpected deflationary trend, the coming months will be critical in determining whether this marks a temporary fluctuation or the beginning of a more prolonged economic phase.
