Israel’s annual inflation rate eased to 2.5% in September, down from 2.9% in August, marking the second consecutive month within the government’s 1–3% target range after more than a year above it, the Central Bureau of Statistics has said.
The decline was driven by lower prices for vacations, flights, fresh fruit, and cultural and entertainment activities.
These decreases helped offset rising costs in fresh vegetables, rent, and healthcare.
The cooling inflation has intensified calls for the Bank of Israel to lower its benchmark interest rate, which has remained at 4.5% since January.
“The low inflation rate will allow Israel’s central bank to soon reduce the base interest rate,” said Gad Lior, a senior analyst at the Israeli daily Yedioth Ahronoth.
The Manufacturers Association of Israel echoed the sentiment, urging an immediate rate cut to support exporters and ease the shekel’s recent appreciation against foreign currencies.