Israeli Grocery Prices Soar Five Times Faster Than Before, Study Finds
Translated & summarized from Cursorinfo by baba
A Tel Aviv University study reveals that the cost of a grocery basket in Israel has increased nearly five times faster in the last four years than in the previous four, with prices surging significantly since 2023. The research tracked 80 popular items across major retail chains and online platforms, showing price hikes ranging from 14.5% in discount stores to 19.6% in convenience stores. Researchers attribute the main cause to a lack of government intervention and public discussion on the cost of living, while a retailer cited rising labor costs. The study highlights that this trend is not unavoidable and calls for government action to curb price increases.
The story in 6 lines · by baba
- Israeli grocery prices have risen nearly five times faster in the last four years compared to the previous four.
- A Tel Aviv University study analyzed 80 popular items across major retail chains and online platforms.
- Convenience stores and online channels saw grocery basket costs rise by approximately 19% in the recent period.
- Discount chains experienced a 14.5% increase in grocery basket costs over the last four years.
- Researchers cite a 'regulatory and public vacuum' as the primary driver of the price surge.
- Professor Itay Ater calls for decisive government intervention to control and reduce prices.
A basket of groceries in Israel has become nearly five times more expensive over the past four years compared to the preceding four, according to a new study from Tel Aviv University. The research, conducted by Professor Itay Ater and doctoral student Adi Omer from the Coller School of Management, analyzed prices of 80 popular items across approximately 700 branches of major retail chains from September 2018 to August 2022, and then from September 2022 to August 2026. The study found a significant price surge beginning in 2023 and continuing through 2025, following four years of relatively stable prices. This trend is evident across all sales channels: convenience stores saw a 19.6% increase in the grocery basket cost, compared to 4.3% in the earlier period. Online channels experienced a 19% rise, up from 4.1%, while discount chains saw a 14.5% increase, a sharp jump from the 2.8% rise between 2018 and 2022. Specific chains showed dramatic differences, with "Shufersal Deal" experiencing a 22.7% increase in the basket cost over the last four years, amounting to 231 shekels, compared to a mere 0.6% (6 shekels) in the prior four years. Online services, including "Shufersal Online," saw a 24% increase in basket prices. Individual products also saw significant price hikes, such as a 100-gram bar of "Elite" milk chocolate, which rose by 77.9% in convenience stores. The researchers identified the primary cause of this price surge not in rising production or import costs, which were partially offset by a strengthening shekel and falling global food prices, but in a "regulatory and public vacuum." They argue that a lack of government intervention and public discourse has allowed companies to raise prices. Professor Ater stated that this cost of living crisis is not inevitable and requires decisive government intervention to control prices. One retailer, however, pointed to increased labor costs as a significant factor, while also noting that many other goods have become cheaper.
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