Israel’s annual inflation down to 2.4%, as prices of many goods fall

Israel’s annual inflation in November retreated, led by declines in the costs of fresh fruit and vegetables, foreign travel, along with entertainment and culture, as shown in data released by the Central Bureau of Statistics.

Annual inflation over the past 12 months decelerated to 2.4%, from 2.5% in October. In August, the inflation rate moved within the government’s annual target range of between 1% to 3% for the first time since June 2024.

On a monthly basis, the consumer price index (CPI), a measure of inflation that tracks the average cost of household goods, fell in November by 0.5%, at the upper range of analysts’ expectations of a decline of between 0.4% to 0.5%. The CPI rose 0.5% in October from September.

In November, declines were seen in the prices of fresh fruit and vegetables, which were down 4.1%, entertainment and culture fell 2.5%, while communication and transportation prices slipped 1.6%. Expenses for travel abroad and in
Israel dropped 5.6%, and costs of accommodation and travel in Israel were down 8.6%.

These were offset by notable increases in the cost of food, not including fruit and vegetables, which rose by 0.4%.

Rents on renewal of contracts soared 2.8% in November, and rents on contracts for new tenants jumped 4.7%.