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Israel's CPI Drops, Inflation Hits 2.5%; Rate Cut Possible

10/17/2025

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Story summary
  • Israel's Consumer Price Index (CPI) fell 0.6% in September 2025, lowering inflation to 2.5% from 2.9% in August 2025.
  • The CPI decline stems from lower prices in fresh fruit, entertainment, and transportation.
  • The Bank of Israel may cut rates, with the next policy decision scheduled for November 24, 2025.
  • Housing prices fell 0.6% in two months, though they rose in several regions year over year; the shekel strengthened, reducing export competitiveness.