Israeli Food Basket Prices Soar at Nearly Five Times the Previous Rate
Translated & summarized from Ice by baba
A new study by Tel Aviv University researchers found that the cost of a fixed basket of 80 popular food items in Israel has increased by nearly five times the rate seen in the previous four years. Neighborhood stores and online shopping saw the steepest hikes, with prices rising by 19.6% and 19% respectively. While production and import costs are factors, researchers highlight a "regulatory and public vacuum" as a key reason for the surge, suggesting companies capitalized on a lack of government and public attention to raise prices.
The story in 6 lines · by baba
- Israeli food basket prices rose nearly five times faster in the last four years compared to the previous period.
- Neighborhood convenience stores and online shopping saw the steepest price increases, up 19.6% and 19% respectively.
- Shufersal Deal's basket price increased by 22.7% in the recent four years, an additional NIS 231.
- Rami Levy remains the cheapest chain overall, despite a 10.3% price increase.
- Researchers cite a "regulatory and public vacuum" as a primary driver for the price hikes.
- Specific products like chocolate and borekas saw significant price jumps of over 30%.
A new study reveals that the cost of a fixed basket of 80 popular food items in Israel has risen sharply over the past four years, at a rate nearly five times faster than in the preceding four-year period. Researchers from Tel Aviv University's Coller School of Management tracked prices across approximately 700 branches of major supermarket chains, collecting data from the Pricez system according to the Food Law. The study compared the period from September 2018 to August 2022 with September 2022 to August 2026, noting a significant price increase surge beginning in 2023 and continuing through 2025, following a period of relative stability.
Neighborhood convenience stores, including Tiv Ta'am, Fresh Market, Shufersal Sheli, and Carrefour City, experienced the steepest price hikes, with the basket costing 19.6% more in the recent four years compared to a 4.3% increase previously. Online shopping also saw a substantial rise of 19%, up from 4.1%. Discount chains experienced a 14.5% increase, compared to 2.8% in the earlier period. Among specific chains, Shufersal Deal saw its basket price increase by 22.7% (an additional NIS 231), while Shufersal Sheli and Fresh Market rose by 19.6% (an additional NIS 222 and NIS 26 respectively in the earlier period). Rami Levy remains the cheapest chain overall, despite a 10.3% price increase, followed by Yohananof.
Specific products also saw dramatic price jumps. For example, Elite milk chocolate (100g) in neighborhood stores increased by 77.9%, and Adanot cheese borekas (800g) rose by 30.9% in urban chains. The researchers attribute these widespread price increases not solely to rising production and import costs, which should have been mitigated by a strengthening shekel and falling global food prices. Instead, they point to a significant "regulatory and public vacuum," suggesting that companies exploited the lack of government attention and public discourse on the cost of living to raise prices.
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