Israel's annual inflation fell to 1.6% in the latest reading, the lowest level in more than five years, according to Jewish Breaking News. The decline strengthens the case for further interest-rate cuts, with fuel, produce, and overseas travel becoming cheaper, while renters face rising costs on new leases.
Jewish Breaking News has confirmed that Israel's annual inflation rate fell to 1.6% in the latest reading, the lowest level in more than five years, according to a report published Thursday. The figure, within the Bank of Israel's 1–3% target range, strengthens the case for further interest-rate cuts, with cheaper fuel, produce, and overseas travel offsetting rising rents on new leases. The confirmation echoes the data first reported by The Zioneer on Wednesday evening.
On Wednesday, July 15, at 18:30 Jerusalem, The Zioneer's initial report (citing ynet) placed the annual rate at 1.6%, the lowest since 2021. Within the same hour, additional details emerged: the consumer price index for June was unchanged, apartment prices fell 1% (the steepest monthly drop in eight years), and Finance Minister Bezalel Smotrich called for a significant rate cut, saying the data proves his economic policy is working. The figure was also reported by Amit Segal (N12), moving from a single-source report to multi-source corroboration within minutes.
The decline continues a trend The Zioneer has tracked: annual inflation steadied at 1.9% in June, and the Bank of Israel cut its benchmark rate to 3.5% on July 6, warning that recovery depends on no renewed fighting. Land prices fell 4.9% in 2024–2025, and fuel prices dropped 32 agorot per liter in late June—all contributing to the disinflationary environment.
No official Central Bureau of Statistics confirmation has been published beyond the CPI data already released Wednesday. Whether the Bank of Israel will respond with a further rate cut at its next meeting remains open, as does the trajectory of rental costs, which the new report highlights as a persistent upward pressure.
5 developments
- StrongAnnual inflation steadies at 1.9% after governor signals rate-cut easing
- ConfirmedIsrael apartment prices fall 0.3% in March-April, with sharp drops in Jerusalem and Haifa
- StrongBank of Israel Cuts Rate to 3.5%, Warns Recovery Depends on No Renewed Fighting
- DevelopingU.S. inflation unexpectedly drops 0.4% to 3.5% in June
Source and signal
- Internal intake