Israel’s annual inflation rate dropped to 2.4% in November, its lowest level in four years, the Central Bureau of Statistics said Monday.
The 12‑month rate was last at that level in November 2021 before climbing steadily and peaking at 5.4% in January 2023. Inflation has since eased back into the government’s target range of 1% to 3%, allowing the central bank to cut its base interest rate for the first time since January 2024.
Gad Lior, a senior analyst at the Israeli daily Yedioth Ahronoth, said the decline was driven largely by the sharp appreciation of the shekel against major currencies and weaker consumer spending as households absorbed losses from recent tax hikes.
He cautioned, however, that the central bank is unlikely to cut rates again soon, citing the lack of an approved 2026 budget, political uncertainty over the Jewish ultra‑Orthodox draft law, and ongoing military tensions with Hezbollah in Lebanon.
On a monthly basis, the consumer price index fell 0.5% in November, reversing a 0.5% rise in October. The drop was led by lower airfare, vacation costs and fresh produce prices, partly offset by higher costs for frozen vegetables, beverages and rent.