Israel’s annual inflation rate stayed at 1.5% in August 2026, unchanged from the previous month and slightly below the 1.6% expected. The reading remained within the central bank’s 1%-3% target range and at its lowest level since May 2021. Price growth rebounded in transport to 0.6% from -0.4%, while deflation (a sustained decline in prices) eased in furnishings to -3.9% from -4.1% and clothing and footwear to -5.2% from -6.3%. Price pressures also moderated in food, including vegetables, housing, dwelling maintenance, health, and education, culture and entertainment. On a monthly basis, consumer prices rose 0.7%, accelerating from a 0.3% increase in the previous month.