The consumer price index fell by 0.61% in September. Inflation in Israel fell from 2.91% last month to 2.51% - half a percentage point below the upper target set by the Bank of Israel.
The decline is particularly sharp in the prices of new apartments, which fell by 1.2%. Compared to July-August last year, the increase in housing prices moderated to 0.7%. Since the beginning of the year, the apartment price index has fallen by 1.5%.
Notable price declines were recorded in September in various categories: fresh fruit prices fell by 3.2%, culture and entertainment prices by 2.4%, transportation and communication by 2.2%, food by 0.5%, clothing and footwear by 0.3%, prices for tenant-owned housing services and apartment maintenance fell by 0.2% each.
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Notable price increases were recorded in the fresh vegetable categories, which rose by 3.5%, and rent and healthcare, which rose by 0.3% each.
The rent for tenants who renewed their contract increased by 2.61%, and for new tenants - apartments in the sample where there was a tenant turnover - increased by 5.31%.
Apartment prices fell by 0.61% in July-August compared to June-July.
In the breakdown by districts, the following data were recorded in July-August: in Jerusalem there was an increase of 1.0%, in the North a decrease of 0.2%, in Haifa a decrease of 0.4%, in the Center a decrease of 1.8%, in Tel Aviv a decrease of 0.9% and in the South an increase of 0.8%.
On an annual basis - between July-August 2024 and July-August 2025, there was an increase of 0.7% in apartment prices.
Earlier today, the Bank of Israel updated that at this stage it does not intend to advance the interest rate announcement.
The bank stated: "In light of the rumors on the subject, we would like to clarify that the upcoming interest rate decision is scheduled for November 24, 2025. Although the Bank of Israel reserves the right to make interest rate decisions even outside of the quorum, the issue of bringing forward a decision is not on the agenda.".
