Israel's 'Basket' Initiative Sees Prices Rise at Carrefour
Translated & summarized from Ice by baba
A consumer initiative called "Basket of Israel" aimed at lowering supermarket prices has reportedly led to price increases at Carrefour, with prices rising by over 4% for featured products. The program, which concluded after six months, was intended to foster competition. While Carrefour disputes the findings, the Ministry of Economy claims the initiative saved consumers at least 40 million shekels and lowered prices by 8.4% in leading chains.
The story in 5 lines · by baba
- Carrefour prices rose over 4% during Israel's "Basket" consumer initiative.
- The "Basket of Israel" program aimed to lower prices but saw mixed results.
- Shufersal's "Universe" saw the largest price increase at 9.11%.
- Carrefour disputes the findings, claiming it offers one of the cheapest baskets.
- The Economy Ministry claims the initiative saved consumers 40 million shekels.
A consumer initiative in Israel aimed at lowering supermarket prices and fostering competition has reportedly led to price increases at Carrefour, contrary to its stated goals. The "Basket of Israel" program, which concluded after six months, was intended to drive down costs for consumers. However, a recent review found that prices for products included in the "Basket" at Carrefour Hyper increased by approximately 4.18% and at Carrefour Market by 4.07% compared to pre-initiative levels. Carrefour was already ranked as the second most expensive chain among those surveyed before the initiative, and it maintained that position, now trailing "Universe" by Shufersal.
The findings were reported by the program "HaTzinor," which conducted the analysis using Pricez data. Carrefour's entry into the Israeli market was accompanied by significant promises, with its arrival hailed as a major benefit for Israeli citizens. Despite these assurances, the current examination indicates that prices for "Basket of Israel" items at Carrefour are higher than before the program began.
Other major supermarket chains also saw price increases. "Universe" by Shufersal led with a 9.11% rise, followed by Rami Levy at 5.24%. Carrefour Hyper saw a 3.64% increase, Osher Ad 3.00%, and Yohananof 2.03%. During the same period, the general consumer price index rose by about 1.3%. The "Basket of Israel" initiative, launched by Minister of Economy Nir Barkat, was designed to stimulate competition and reduce prices, but the reported data suggests the opposite effect in some chains.
Carrefour disputes these findings, stating that their own checks show Hyper Carrefour is among the three cheapest "baskets" in the country. The Ministry of Economy and Industry presented different figures, claiming the initiative resulted in direct savings of at least 40 million shekels. According to the ministry, prices for comparable "basket" products in leading chains decreased by 8.4% during the pilot period, compared to a 3% drop in overall consumer goods across leading chains.
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