Food Prices in Israel Skyrocket, New Study Finds
Translated & summarized from N12 by baba
A Tel Aviv University study found that food prices in Israel have risen five times faster in the last four years compared to the previous four, with a basket of goods increasing by over 220 shekels versus 50 shekels. The sharpest price hikes were observed at Shufersal and Victory supermarkets. Researchers cited government inaction on the cost of living and increased production costs as key drivers, noting that consumer vigilance has become less effective since 2023.
The story in 6 lines · by baba
- Food prices in Israel have risen five times faster in the last four years than in the preceding period.
- A basket of 80 popular grocery items increased by over 220 shekels between 2022 and 2026.
- Shufersal and Victory supermarkets experienced particularly significant price increases.
- Researchers attribute the surge to government inaction and increased production costs.
- The study highlights the severe impact on low-income families.
- Consumer vigilance, previously effective, has become less impactful since 2023.
A new study from Tel Aviv University reveals a dramatic acceleration in food price increases in Israel over the past four years, with prices rising five times faster than in the preceding four-year period. Between 2018 and 2022, the average cost of a basket of 80 popular grocery items increased by approximately 50 shekels. However, from 2022 to 2026, this cost surged by over 220 shekels. The study, which tracked monthly average prices after discounts in about 700 stores, found that online and neighborhood stores saw price hikes of at least 19%, while discount chains experienced a 14.5% increase. Specifically, the Shufersal and Victory supermarket chains saw particularly sharp price rises. Professor Itai Ater, one of the study's authors, noted that while the public had the ability to curb price increases through vigilance since 2011, this changed in 2023.
Researchers attributed the price surge to several factors, including VAT increases and rising costs for municipal taxes, water, electricity, and regulated goods. While a strengthening shekel and a drop in global food prices in 2022 could have mitigated import costs, these external factors alone do not explain the full extent of the price hikes. The study suggests that a significant contributing factor was the government's lack of action on the cost of living crisis. Professor Ater stated that effective price control requires genuine government intervention and consistent efforts to promote competition, warning that without such measures, consumers will continue to bear the brunt.
Specific products that saw notable price increases include Elite's 100g milk chocolate bar, which rose by 78% in neighborhood stores, and Taster's Choice 200g instant coffee, which increased by 26%. The study also highlighted that the impact is particularly severe for low-income families, who spend a larger portion of their income on food. Ater lamented that the "triangle" of a functioning government, an alert public, and reporting media, which was effective in curbing prices until early 2023, has faltered, allowing companies to exploit the situation.
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