Israel's annual inflation rate slowed to 1.5% in July 2026 from 1.6% in June, staying comfortably inside the central bank's 1%-3% target range and marking the lowest reading since May 2021. The easing reflected softer price growth in food, including vegetables, housing, dwelling maintenance, health, and education, culture and entertainment. Deflation deepened in transport, furnishings, and clothing and footwear, adding to the broader moderation in price pressures. On a monthly basis, consumer prices rose 0.3% after being flat in June.