Food Prices in Israel Skyrocketed 19% Over Four Years

A new study from Tel Aviv University reveals that food prices in Israel have surged by an average of 19.6% over the past four years, a rate nearly five times higher than in the preceding four-year period. The research, conducted by Professor Itai Atar and doctoral student Adi Omer, tracked a basket of 80 popular products from September 2022 to August 2026. Prices increased by 19.6% in neighborhood stores, 19% for online purchases, and 14.5% in discount chains. In contrast, the previous four years saw increases of only 4.3%, 4.1%, and 2.8% respectively.

The study highlights significant price hikes for individual items, such as Elite milk chocolate, which rose by nearly 78% in neighborhood stores, and Adanot cheese borekas, up 47.5% online. The researchers noted that while government crises and the war occupied national attention, the cost of living was pushed down the agenda, leading to continued price increases for consumers.

Further analysis indicates that the rise in food production costs, according to the Central Bureau of Statistics, was only about 2% over the last four years, significantly lower than the price increases consumers faced. This disparity raises questions about the explanations provided by food companies and retailers for the price hikes. While factors like VAT increases and rising utility costs contributed, they do not fully account for the surge, especially as the shekel strengthened and global food prices decreased from their 2022 peak.

Atar and Omer also criticize the government's lack of action on the cost of living, suggesting that the absence of public and media pressure allows food companies to raise prices. They emphasize that while the government may not be solely responsible for every increase, its policies and public pressure significantly influence corporate behavior. Despite a slowdown in the rate of increase in 2026, prices have not returned to previous levels, disproportionately affecting low-income families who spend a larger portion of their budget on food.

Atar stated that the data illustrates the severity of the price increases for Israeli shoppers, particularly impacting low-income households. He asserted that curbing and even lowering prices requires genuine government intervention, promoting competition, removing barriers, and addressing power centers within the food market, warning that without such measures, consumers will continue to bear the cost.