2025.10.1515:52:42UTC+00Israel Inflation Slows in September

In September 2025, Israel experienced a deceleration in its annual inflation rate, bringing it down to 2.5%, the lowest figure observed since February 2024. This marks a decrease from 2.9% in the previous month and falls short of the anticipated 2.8% as estimated by market analysts. The downturn in inflation can be attributed mainly to a slowdown in price increases across several categories. Housing prices rose by 4.2%, compared to 4.4% in August, and food prices saw a growth of 0.9%, down from 1.9%. Additionally, there were decreases in the rates of inflation for education, culture, and entertainment, dropping to 2.8% from 3.8%, dwelling maintenance at 3.1% from 3.3%, and health services at 3.0% from 3.4%. Furthermore, furniture and household equipment experienced a deeper decline, from -1.5% to -2.1%. However, these decreases were somewhat balanced by a quicker rise in costs related to transportation and communication, which increased to 2.5% from 2.3%. The fall in clothing and footwear prices also moderated, moving from a decrease of -6.7% to -5.9%. On a month-to-month basis, the Consumer Price Index (CPI) dropped by 0.6% in September, overturning a 0.4% rise recorded in August and surpassing predictions of a 0.3% decrease by industry analysts.