Israeli Food Basket Prices Soar, But Inflation Explains Much of the Rise
Translated & summarized from Globes by baba
A Tel Aviv University study found that a basket of 80 food items in Israel increased by nearly 20% between September 2022 and August 2026. While this rate is significantly higher than the previous four years, researchers attribute a substantial portion to general inflation, which rose about 12.5% in the same period. The study highlights significant price differences between supermarket chains and calls for government action to address the rising cost of living, which disproportionately affects low-income families.
The story in 6 lines · by baba
- A basket of 80 food items in Israel rose by nearly 20% between September 2022 and August 2026.
- The recent price increase rate is almost five times higher than in the preceding four years.
- General inflation of approximately 12.5% explains a significant part of the food basket's price hike.
- Price increases varied significantly among different supermarket chains and online platforms.
- Researchers suggest insufficient government action and reduced public attention contributed to rising prices.
- Low-income families are disproportionately affected by the rising cost of food.
A new study from Tel Aviv University reveals that the cost of a fixed basket of 80 food items in Israel has significantly increased over the past four years. Between September 2022 and August 2026, the basket price rose by 19.6% in neighborhood stores, 19% online, and 14.5% in discount chains. This represents a substantial acceleration compared to the preceding four years (2018-2022), which saw much more moderate price increases.
However, the researchers, Professor Itai Atar and doctoral student Adi Omer, caution that these figures must be viewed in the context of broader economic factors. Over the examined period, the consumer price index rose by approximately 12.5%. This indicates that a significant portion of the food basket's price hike reflects general inflation, as well as global commodity prices, shipping costs, and raw material expenses.
The study, which tracked monthly average prices across major chains like Shufersal, Rami Levy, and Victory, found that the rate of price increases in the recent four-year period was nearly five times higher than in the previous four years. Yet, this does not mean individual product prices quintupled, but rather that the cumulative rate of increase was substantially higher. For instance, a bar of Elite milk chocolate rose by about 78% in neighborhood stores, compared to approximately 22% in the earlier period.
Significant variations were observed between different supermarket chains. Shufersal Deal saw a 22.7% increase in the basket price over the last four years, while Rami Levy experienced a 10.3% rise. The study also noted that government initiatives, such as the "Basket of Israel" campaign, had limited success in curbing price hikes, with some chains showing price drops but overall market-wide impact remaining constrained.
The researchers suggest that beyond economic factors like inflation and supply chain issues, a lack of sufficient government action on the cost of living and reduced public and media attention may have contributed to the price increases. They call for government intervention to promote competition, remove barriers, and address power centers within the food market, particularly noting the disproportionate impact on low-income families.
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