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Israel's Inflation Drops to 1.8%, Rate Cuts Loom

2/17/2026

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Story summary
  • Israel's inflation rate fell to 1.8% in January 2026, the lowest since June 2021, according to the Central Bureau of Statistics.
  • The consumer price index dropped 0.3% from December, with clothing, transportation, and entertainment driving the decline.
  • Rents rose 2.6% for contract renewals and 6% for new tenants.
  • The Bank of Israel may cut rates again after two reductions.
  • The next rate decision is set for February 23.