The Consumer Price Index for September fell by 0.6%, lower than the same period last year, causing the annual inflation rate to drop to 2.5%. The expectation now is that the Bank of Israel will reduce interest rates in its next decision in November, for the first time in almost two years. Comparing transaction prices from July-August 2025 to those from June-July 2025 shows that housing prices fell by 0.6%. Comparing transactions made in July-August this year to the same period last year, the increase in housing prices has moderated significantly and now stands at 0.7%.
Inflation drops significantly, housing prices continue to fall
Gad Lior, Hila Zion|
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