Israel has experienced a notable drop in inflation, with the consumer price index falling and housing prices showing signs of stabilization. While the annual housing price index still reflects a slight increase, the pace of growth has slowed considerably in recent months. Comparing July-August 2025 to the same period in 2024, housing prices rose by only 0.7%.

Regionally, Jerusalem saw a modest increase of 1% in housing prices between July-August and June-July 2025, while declines were observed in the North, Haifa, Central District, Tel Aviv, and the South. Over the past year, prices increased in the North, Jerusalem, Haifa, and the South, but fell in the Central District and Tel Aviv. These figures suggest a cooling housing market and a broader easing of inflationary pressures.