Israel’s Consumer Price Index (CPI) fell 0.3% in May 2025 according to figures released by the Central Bureau of Statistics today. Analysts had predicted that the CPI would remain unchanged in May, after the CPI had risen a whopping 1.1% in April 2025. The May reading unexpectedly brings annual inflation in Israel down to 3.1% from 3.6% at the end of April, bringing inflation close to the upper limit of the Bank of Israel’s annual target range of 3%. Analysts had expected annual inflation to be 3.3%-3.4%.
Prominent price declines in May were in transport and communications, which fell 2.4% each, fresh vegetables which fell 0.6%, and housing maintenance and services, which fell 0.3%.
Prominent price increases in May were in fresh fruit, which rose 3.9%, clothing and footwear, which rose 1.4%, culture and entertainment, which rose 0.6%, and health, which rose 0.3%, and food and housing rentals, which each rose 0.2%.
The Central Bureau of Statistics has also published the change in home prices (which are not part of the general CPI) between February-March 2025 and March-April 2025. On average, prices fell 0.1%. This is the second successive month that prices have slightly fallen. In the breakdown by region, prices rose by 1.2% in Jerusalem, and fell 1.3% in the north, unchanged in Haifa, rose by 0.3% in the center, fell 0.6% in Tel Aviv, and fell 0.2% in the south. Prices of new apartments rose 0.4%.
In the comparison between March-April 2025 and March-April 2024, the index of housing prices rose 5.1%. In the breakdown by region, prices rose by 9.5% in the north, 6.9% in Jerusalem, 5.3% in Tel Aviv, 5.3% in Haifa, 3.8% in the south and 2.9% in central Israel. Prices of new apartments have risen by 5.8% over the past year.
Published by Globes, Israel business news – en.globes.co.il – on June 15, 2025.
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