July CPI rises 0.4% as home prices continue to fall

Annual inflation has fallen towards the upper limit of the Bank of Israel’s target range, while housing prices fell for the fourth consecutive month.

Israel’s Consumer Price Index (CPI) rose 0.4% in July 2025, according to figures released by the Central Bureau of Statistics today, as analysts had predicted. The July reading reduces annual inflation in Israel to 3.1% from 3.3% at the end of June, taking inflation towards the upper limit of the Bank of Israel’s annual target range of 3%.

Prominent price increases in June were in transport, which rose by 1.6%, culture and entertainment, which rose 1.3%, and housing maintenance and services, which rose 1.1%.

Prominent price declines in June were in clothing and footwear, which fell 4.2%, fresh fruit and vegetables, which fell 0.9%, and furniture and household equipment, which fell 0.4%.

The Central Bureau of Statistics has also published the change in home prices (which are not part of the general CPI) between April-May 2025 and May-June 2025. On average, prices fell 0.5%. This is the fourth successive month that prices have fallen, after falling 0.3% in the previous month.

In the comparison between May-June 2025 and May-June 2024, the index of housing prices rose 2.5%.

Published by Globes, Israel business news – en.globes.co.il – on August 15, 2025.