Israel's Consumer Price Index dropped by 0.6% in September, bringing annual inflation down to 2.5%, the lowest level since February. The decline was sharper than last year, and has led to speculation that the Bank of Israel may cut its benchmark interest rate soon. Notable price decreases were seen in fresh fruit, culture and entertainment, transportation, food, and housing services, while fresh vegetables, rent, and healthcare saw increases.
Home prices continued to fall for the sixth straight month, with a cumulative decline of over 2% in the past half year. However, rent prices rose, especially for new tenants. Regional differences were observed, with Jerusalem experiencing a rise in home prices, while most other regions saw declines. New home prices also fell, particularly for transactions outside government-supported programs.