Food Prices in Israel Skyrocket, Nearly Five Times Faster Than Previous Years
Translated & summarized from Israel Hayom by baba
Food prices in Israel have surged by nearly five times the rate seen in the previous four years, according to a Tel Aviv University study. A basket of 80 popular items increased by nearly 20% between September 2022 and August 2026, with individual products like chocolate and coffee seeing significant price hikes. Researchers attribute the surge to rising taxes and fees, coupled with a lack of public and governmental focus on the cost of living. Professor Itai Atar warned that without government intervention, consumers will continue to bear the brunt of these price increases.
The story in 5 lines · by baba
- Food prices in Israel have risen nearly five times faster in the last four years compared to the previous period.
- A study by Tel Aviv University tracked a basket of 80 products, showing a nearly 20% increase between September 2022 and August 2026.
- Specific products like chocolate bars saw price increases of up to 77.9% in neighborhood stores.
- Researchers cited rising taxes and a decline in public attention to the cost of living as key factors.
- Professor Itai Atar warned that government action is needed to address market power and prevent further price hikes.
Food prices in Israel have surged dramatically over the past four years, increasing at a rate nearly five times higher than in the preceding four-year period, according to a new study by researchers at Tel Aviv University's Coller School of Management. The analysis, conducted by Professor Itai Atar and doctoral student Adi Omer, reveals a broad wave of price hikes that began in 2023 and continued through 2024 and 2025, following several years of relative stability in grocery basket prices.
The study tracked a fixed basket of 80 popular products. Between September 2022 and August 2026, the basket's price rose by 19.6% in neighborhood stores, 19% online, and 14.5% in discount chains. Researchers noted these increases are almost five times greater than those recorded between September 2018 and August 2022. In monetary terms, this translates to hundreds of shekels added to the average shopping basket over the last four years, compared to only a few shekels in some chains during the earlier period.
Individual product price increases are also significant. For example, the average price of a 100-gram bar of Elite milk chocolate rose by 77.9% in neighborhood stores from September 2022 to August 2026, from 5.21 to 9.26 shekels. In the four years prior, the same bar increased by only 22%. A 800-gram package of Edanot cheese borekas increased by 30.9% in the recent period, from 19.15 to 25.07 shekels, contrasting with an 8.4% decrease in the preceding four years. Instant coffee also saw substantial price jumps.
Similar trends were observed across different retail channels. Shufersal Deal saw its basket price increase by 22.7% in the last four years, adding 231 shekels, compared to a mere 0.6% increase (6 shekels) in the prior period. Online prices also accelerated, with Shufersal Online's basket rising 24% in the recent period after remaining nearly unchanged in the four years before.
Researchers attribute the price hikes to factors including VAT, property tax, water, and electricity increases, as well as price hikes by food companies on non-regulated products. They suggest that a significant contributing factor is the diminished public and governmental attention to the cost of living, which allows food companies more leeway to raise prices. Professor Atar stated that the data highlights the severity of the price increases, particularly impacting low-income families, and emphasized that the cost of living is not inevitable, calling for consistent government action to promote competition and address market power imbalances.
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