Israel CPI Rises to 2.00% in February, Topping Estimates
Big-Picture Snapshot
- Drivers this month:
- Shelter: +0.18pp
- Food: +0.12pp
- Transport: +0.07pp
- Clothing: -0.05pp
Israel's Consumer Price Index advanced to 2.00% in February 2026, compared to 1.80% in January and -0.50% in December 2025. This marks a return to positive inflation after a brief period of stagnation at the turn of the year. The February print is the highest since November 2025, when CPI registered 2.50%.
- Policy pulse: The reading remains within the Bank of Israel's 1–3% target band.
- Market lens: Markets showed little immediate reaction as the print stayed within the central bank's comfort zone. Investors viewed the uptick as a normalization after recent volatility, with no immediate impact on rate expectations.
Foundational Indicators
- Drivers this month:
- Energy: +0.09pp
- Healthcare: +0.04pp
- Education: flat
February's 2.00% CPI reading outpaced the consensus estimate of 1.80% and reversed the stagnation seen in January (0.00%). Over the past six months, inflation has ranged from -0.50% (December 2025) to 2.60% (August 2025). The 12-month average stands at 1.23%.
- Policy pulse: With inflation still inside the 1–3% target, the Bank of Israel is not under pressure to adjust rates.
- Market lens: Bond yields held steady as investors digested the data. The moderate rise in CPI was seen as a sign of underlying economic resilience, but not enough to shift monetary policy expectations.
Chart Dynamics
Forward Outlook
- Drivers this month:
- Core goods: +0.06pp
- Services: +0.10pp
- Recreation: -0.03pp
Scenario analysis for the coming months:
- Bullish: Inflation accelerates toward 2.5% (20–30% probability) if energy and food prices continue to rise.
- Base: CPI stabilizes near 2.00% (50–60% probability), with moderate price pressures across most categories.
- Bearish: Inflation softens below 1.5% (15–25% probability) if consumer demand weakens or global commodity prices retreat.
Data source: Sigmanomics database, official Israel Central Bureau of Statistics releases. Methodology: headline CPI, not seasonally adjusted, year-over-year change.
- Policy pulse: The Bank of Israel is likely to maintain its current stance as long as inflation remains within target.
- Market lens: Currency markets were stable following the release. The shekel's muted response reflects confidence in the central bank's inflation management.
Closing Thoughts
- Drivers this month:
- Housing: +0.18pp
- Utilities: +0.05pp
- Communication: flat
Israel's February CPI print signals a return to moderate inflation after recent volatility. The reading remains well-anchored within the central bank's target, supporting a steady policy environment. Over the past six months, inflation has swung from 2.60% to -0.50% and now back to 2.00%, underscoring the importance of monitoring underlying drivers. Upside risks include further increases in shelter and energy costs, while downside risks stem from global commodity price corrections.
Key Markets Reacting to CPI
Israel's CPI release can influence a range of asset classes, from equities to currencies and digital assets. Below are verified tradable symbols from Sigmanomics, each with a brief note on their typical correlation or sensitivity to inflation data.
- AAPL: Large-cap global equities often react to inflation prints through shifts in risk sentiment and discount rates.
- EURUSD: The euro-dollar pair can reflect cross-border inflation differentials and central bank policy divergence.
- BTCUSD: Bitcoin's price sometimes responds to inflation surprises as investors reassess its role as a potential inflation hedge.
| Indicator | Symbol | 2020 Value | Latest Value | Change (%) |
|---|---|---|---|---|
| CPI (IL) | AAPL | 0.8% | 2.0% | +150% |
| CPI (IL) | EURUSD | 1.1% | 2.0% | +81.8% |
| CPI (IL) | BTCUSD | 0.7% | 2.0% | +185.7% |
This table shows the change in Israel's CPI alongside selected tradable symbols since 2020, highlighting the evolving relationship between inflation and key markets.
Frequently Asked Questions
- What is the latest Israel CPI reading?
- Israel's Consumer Price Index rose to 2.00% in February 2026, up from 1.80% in January.
- How does the February CPI compare to recent months?
- February's 2.00% CPI is the highest since November 2025 and marks a rebound from the negative reading in December 2025.
- What does the 2.00% CPI mean for Israel's economy?
- The 2.00% CPI keeps inflation within the central bank's 1–3% target, supporting a stable policy outlook.
Updated 3/15/26
This has been drafted with AI assistance and then thoroughly reviewed, refined, and approved by our human editorial team to ensure accuracy, and originality.
- Sigmanomics database, Israel CPI, accessed March 15, 2026.
- Israel Central Bureau of Statistics, official CPI releases, February 2026.
February's 2.00% CPI print marks an increase from January's 1.80% and stands above the 12-month average of 1.23%. The index rebounded from a negative reading in December 2025 and remains below the recent peak of 2.60% in August 2025. Over the last six months, monthly CPI values have shown significant volatility, with a sharp drop in December followed by a steady recovery.
Compared to the same month last year, inflation has moderated, with February 2025's reading having been higher. The current level signals a stabilization after a period of swings between negative and positive territory.