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Figures released by the Central Bureau of Statistics placed inflation firmly within the government’s 1–3 percent target range, where it has remained in recent months after peaking at 5.4 percent in early 2023.
By Shula Rosen
Israel’s inflation cooled further in November, with annual price growth slipping to 2.4 percent, its lowest level in four years, strengthening signs that price pressures have stabilized after a prolonged period of volatility, official data showed Monday.
Figures released by the Central Bureau of Statistics placed inflation firmly within the government’s 1–3 percent target range, where it has remained in recent months after peaking at 5.4 percent in early 2023. The November reading also edged down from October’s 2.5 percent rate, confirming a gradual but sustained easing trend.
Monthly data pointed to a notable pullback in consumer prices, as the consumer price index fell 0.5 percent in November, reversing an equivalent rise a month earlier and meeting market expectations. The decline was driven largely by steep reductions in airfare and vacation expenses, alongside lower prices for fresh produce. Those decreases were partially balanced by increases in rent, beverages, and frozen or preserved vegetables.
Broader category data showed moderation across several key sectors. Housing-related prices rose at a slower pace than in October, while transport and communication costs also eased. Price growth softened slightly for miscellaneous goods and services, while continued declines were recorded in clothing and footwear, furniture and household items, and fruits and vegetables.
The easing inflation environment has already translated into policy action. The Bank of Israel recently lowered its benchmark interest rate for the first time since January 2024, following months of data indicating a return to price stability.
Despite the improving inflation picture, Lior said policymakers are unlikely to move quickly toward another rate cut. He pointed to unresolved fiscal issues, including the absence of an approved state budget for 2026 and ongoing military tensions with Hezbollah in Lebanon.
Taken together, the November figures suggest inflationary pressures are likely to remain contained in the near term, even as Israel continues to face political, fiscal, and security challenges that could complicate monetary decision-making in the months ahead.
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