Israeli Grocery Prices Soar at Nearly Five Times the Previous Rate
Translated & summarized from Ynet by baba
A new study by Tel Aviv University researchers found that the cost of a basic food basket in Israel has increased by nearly five times over the past four years compared to the previous four. Price surges were seen across all sales channels, with neighborhood stores and online platforms experiencing the highest percentage increases. Researchers attribute the dramatic rise to a "regulatory and public vacuum," alongside increased costs for utilities and taxes, warning that government intervention is needed to curb the high cost of living.
The story in 6 lines · by baba
- Israeli food prices have risen nearly five times faster in the last four years than in the preceding period.
- Neighborhood stores and online grocery platforms saw the largest price increases for a basket of 80 popular products.
- Specific products like Elite milk chocolate and Adanot borekas experienced price hikes of over 30% and 70% in some channels.
- Researchers cite a "regulatory and public vacuum" as a primary driver of the price surge, alongside increased utility costs.
- Professor Itay Eter stated that government intervention is necessary to combat the high cost of living.
- Rami Levy remains the cheapest supermarket chain, while Tiv Ta'am and Shufersal Deal are the most expensive.
A new study reveals that the cost of a basket of basic food products in Israel has risen dramatically over the past four years, at a pace nearly five times faster than in the preceding four-year period. The research, conducted by Professor Itay Eter and doctoral student Adi Omer from Tel Aviv University's Coller School of Management, tracked prices of 80 popular items across approximately 700 branches of major supermarket chains. The study, which compared September 2018-August 2022 with September 2022-August 2026, found a significant price surge beginning in 2023 and continuing through 2025, following a period of relative price stability.
The price increases were observed across all sales channels. Neighborhood stores saw a 19.6% rise in the basket's price, compared to 4.3% previously. Online purchases experienced a 19% increase, up from 4.1%, while discount chains saw a 14.5% jump, compared to just 2.8%. These increases translate to hundreds of shekels added to a family's monthly grocery bill, a stark contrast to the minimal increase of a few shekels in the earlier period.
Specific chains showed significant hikes. Shufersal Deal's basket price increased by 22.7% in the recent four years, adding 231 shekels, compared to a mere 0.6% rise previously. Shufersal Sheli and Fresh Market saw a 19.6% increase, while Victory experienced a 16% rise. Yohananoff and Rami Levy showed more moderate, though still significant, increases of 8.5% and 10.3% respectively. Rami Levy continues to offer the cheapest basket overall, followed by Yohananoff, with Tiv Ta'am and Shufersal Deal being the most expensive.
Online shopping also saw substantial price hikes. Shufersal Online's basket price rose by 24%, adding 247 shekels, while Victory Online increased by 18.6% and Rami Levy Online by 14.1%. The study highlighted specific product price jumps, such as a 77.9% increase for Elite milk chocolate (100g) in neighborhood stores, a 57.6% rise in discount chains, and a 73.5% surge online. Adanot cheese borekas (800g) rose by 30.9% in urban stores and 18.8% in discount chains, while freeze-dried coffee increased by 26.1% in neighborhood stores and 19.7% in discount chains.
The researchers attributed the price surge not only to increased costs of VAT, fuel, water, electricity, and Arnona (municipal property tax), but also to a "regulatory and public vacuum." They argue that macroeconomic factors like a strengthening shekel and falling global food prices should have mitigated import costs. Professor Eter stated that the significant price difference between the periods proves that the high cost of living is not inevitable and requires genuine government intervention, a determined fight against power centers, and the removal of barriers. He warned that without such action, the public will continue to bear the cost.
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