Israel’s annual inflation increases; housing prices rise

Israel’s annual inflation in 2025 increased by 2.6% and remained within the government’s target range, as housing prices are showing signs of picking up, according to data released by the Central Bureau of Statistics.

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

On a monthly basis, the December consumer price index (CPI), a measure of inflation that tracks the average cost of household goods, was little changed from the reading in November.

In December, notable increases were seen in the prices of clothing, which were up 1%, fresh fruit and vegetables rose 0.9%, and housing and transportation costs 0.7% each. Expenses for travel abroad were up 4.1%.

The housing price index was up 0.7%, rents on renewal of contracts soared 3%, and rents on contracts for new tenants jumped 4.6%.

These were offset by declines in the costs of entertainment and culture, which fell 2.6%, and furniture and home equipment slipped by 0.6%.