Annual inflation falls below 3% despite sharp August CPI rise

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Israel’s Consumer Price Index (CPI) rose 0.7% in August 2025, according to figures released by the Central Bureau of Statistics today, as analysts had predicted. Despite the high rise, the August reading reduces annual inflation in Israel to 2.9% from 3.1% at the end of July, taking inflation below the upper limit of the Bank of Israel’s annual target range of 3%.

Prominent price increases in August were in culture and entertainment, which rose 2.9%, transport and communications, which rose 1.6%, fresh vegetables, which rose 1.5%, and housing maintenance and services, which rose 0.3%.

Prominent price declines in August were in fresh fruit, which fell 2.7%, clothing and footwear, which fell 1.6% and furniture and household equipment, which fell 0.5%.

The Central Bureau of Statistics has also published the change in home prices (which are not part of the general CPI) between May-June 2025 and June-July 2025. On average, prices fell 0.2%. This is the fifth successive month that prices have fallen, after falling 0.5% in the previous month.

In the comparison between June-July 2025 and June-July 2024, the index of housing prices rose 1.6%.

Published by Globes, Israel business news – en.globes.co.il – on September 15, 2025.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2025.



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