Food Prices in Israel Jump Nearly 20% in Four Years, Study Finds

The cost of living in Israel continues to strain households, with a new study revealing a significant surge in food prices. Research from Tel Aviv University, published Sunday, October 11, indicates that the cost of a basket of common grocery items in online supermarkets rose by 19% over the past four years. This marks a substantial acceleration compared to a 4.1% increase in the preceding four-year period. The study, conducted by Professor Itai Ater and doctoral student Adi Omer, analyzed prices for 80 products across approximately 700 stores from September 2018 to August 2026. The findings highlight a particularly sharp acceleration in food inflation since 2022. Prices in convenience stores increased by 19.6%, while discount chains saw a 14.5% rise. Some products experienced dramatic price hikes, including an Elite milk chocolate bar, which increased by nearly 78%, and cheese pastries, up 47.5%. Even staple items like infant formula and coffee saw significant price jumps. The study also noted considerable price disparities among different retail chains, with prices at Shufersal Deal increasing by 22.7%, compared to 16% at Victory and 10.3% at Rami Levy. Researchers attribute the price increases to a lack of competition in the Israeli food market and insufficient government measures to combat the high cost of living. They observed that production costs have risen much slower than consumer prices, disproportionately affecting lower-income households. The study authors urge authorities to enhance competition and remove barriers to market entry for new players.