Grocery Prices Soar Nearly 20% in Four Years, Study Finds

The cost of a basket of 80 popular grocery items in Israel has risen by nearly 20% over the past four years, according to a new study by Tel Aviv University's Coller School of Management. Researchers tracked prices from September 2022 to August 2026, comparing them to the preceding four-year period (September 2018 to August 2022).

During the recent four-year span, prices increased by 19.6% at neighborhood stores, 19% online, and 14.5% at discount chains. This sharp rise contrasts with the earlier period, when neighborhood stores saw a 4.3% increase, online prices rose 4.1%, and discount chains experienced a 2.8% hike. The study highlights that the recent price surge is almost five times greater than the increase observed in the prior four years.

Specific products also saw significant price jumps. A 100-gram bar of Pardah chocolate increased by approximately 78% at neighborhood stores, an 800-gram package of Maadanat cheese borekas rose by about 31%, and a kilogram of Sugat classic jasmine rice increased by 17.7% at discount chains.

Significant disparities were also found between different supermarket chains. Shufersal Deal prices climbed by about 22.7% in the last four years, compared to just 0.6% in the previous period. Victory saw a 16% rise, versus 1.2% previously, and Rami Levy experienced a 10.3% increase, compared to 6.1%. Online prices also surged, with Shufersal Online up 24% and Victory Online up 18.6% in the recent period.

Professor Itai Atter of Tel Aviv University suggested that factors such as VAT increases and rising costs for property taxes, water, electricity, and fuel, along with regulated product price hikes, may contribute to the increases. However, he noted that a strengthening shekel and a global decline in food prices since their 2022 peak should have moderated import costs. Atter stated that production and import cost changes alone cannot account for a 20% increase over four years. He also pointed to a lack of consistent government action on the cost of living and a diversion of public and media attention to other issues, creating an environment where food companies might exploit the situation to raise prices. Atter emphasized that the stark difference between the two periods indicates that the high cost of living is not inevitable and requires government mobilization, structural reforms, regulatory improvements, and broader public discourse.