Israeli Food Prices Surge Dramatically, Study Finds

By Мейрав Кристал, Ynet

Translated & summarized from Vesty by baba

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A Tel Aviv University study found that the cost of a basic food basket in Israel has surged by 20% between September 2022 and August 2026, a rate nearly five times higher than the previous four years. Researchers attributed the price hikes to increased VAT, fuel, and regulated goods, but noted that these factors alone don't fully explain the increase. Specific items like milk chocolate and cheese burekas saw price jumps of over 30%. Professor Itay Atari stated that the high cost of living is not inevitable and called for government intervention to lower prices.

The story in 5 lines · by baba

Israeli food basket prices rose 20% between Sept 2022 and Aug 2026, study shows.
Price increases are nearly five times faster than the previous four-year period.
Specific products like milk chocolate and cheese burekas saw significant price hikes.
Researchers cited VAT, fuel, and regulated goods as causes, but questioned their sufficiency.
Professor Itay Atari called for government action to curb and reduce prices.

Israeli Food Prices Surge Dramatically, Study Finds — Editorial illustration generated by baba News, not a photograph of the event.

A study by Tel Aviv University revealed that the cost of a basket of basic food products in Israel has risen nearly five times faster in the last four years compared to the previous four. Researchers Professor Itay Atari and doctoral student Adi Omer from the Coller School of Management tracked prices of 80 popular items across approximately 700 branches of major retail chains, using data from the Pricez website. The study compared the periods of September 2018 to August 2022 with September 2022 to August 2026, noting a significant price acceleration starting in 2023.

The overall food basket increased by 20% between September 2022 and August 2026, translating to hundreds of shekels in additional monthly expenses for families. This surge was evident across different retail segments: neighborhood stores saw a 19.6% increase, online channels 19%, and budget segments 14.5%. In contrast, during the 2018-2022 period, these increases were significantly lower, at 4.3%, 4.1%, and 2.8% respectively.

Specific products experienced dramatic price hikes. For instance, a 100-gram bar of Elite's "Parah" milk chocolate rose by 77.9% in neighborhood stores and 57.6% in discount stores. An 800-gram package of "Maadanot" cheese burekas increased by 30.9% in urban chains, and 200 grams of Taster's Choice instant coffee saw a 26.1% rise in neighborhood stores. A kilogram of "Sugat" rice increased by 17.7% in discount stores.

While researchers cited increased VAT, fuel, water, electricity, Arnona (municipal property tax) rates, and regulated goods prices as contributing factors, they argued these alone do not explain the widespread 20% increase. They noted that a strengthening shekel and a global drop in food prices should have mitigated rising costs. A representative from a retail chain suggested that the study overlooked the significant impact of increased personnel costs on the cost of goods.

Professor Atari emphasized that the stark difference between the two periods demonstrates that the high cost of living is not inevitable. He called for decisive government action, including combating centers of power and removing barriers, to curb and reduce prices, warning that without such intervention, consumers will continue to bear the brunt.