Israel Faces New Food Price Hikes Starting November
Translated & summarized from Cursorinfo by baba
Israel will see increased prices for eggs and flour starting in November, impacting household budgets. Egg prices will rise by about 2.1% due to higher production costs, while flour prices will increase by 10-15% because of supply chain issues stemming from the Ukraine war. These hikes are expected to lead to higher prices for baked goods, adding to existing food inflation.
The story in 5 lines · by baba
- Israeli food prices will increase starting November 1st, affecting household budgets.
- Egg prices will rise by approximately 2.1% due to increased production costs.
- Flour prices will increase by 10-15% due to wheat supply chain disruptions.
- Higher flour costs are expected to lead to price hikes for baked goods.
- Food prices have already risen significantly in recent years, with some items up nearly 78%.
Israel is set to experience another round of price increases on essential food items beginning November 1st, adding further strain to household budgets. The cost of eggs will rise by approximately 2.1% for state-regulated prices, with a dozen eggs increasing by 27 to 33 agorot. Manufacturers attribute this hike to escalating expenses for feed, electricity, labor, and packaging.
Simultaneously, flour producers are informing bakeries of a 10-15% increase in wholesale flour prices, with some tariffs taking effect in November and others in December. One major mill has already announced an 11% price hike. This surge is primarily driven by disruptions in wheat supply chains due to the war in Ukraine, forcing importers to seek more expensive alternative sources and increasing transportation costs.
The rising cost of flour is expected to impact the prices of unregulated baked goods such as bread, buns, cookies, and cakes. However, any price adjustments for regulated bread products will require approval from the Ministry of Economy.
These upcoming increases follow a period of significant food price inflation. Research from Tel Aviv University indicates that between September 2022 and August 2026, the cost of a basket of 80 popular items rose by 14.5% to 19.6% across different retail channels. Specific products have seen even steeper price jumps, including a 78% increase for a 100-gram bar of Elite milk chocolate and a 47.5% rise for Ma'adanot cheese bourekas. Despite a recent annual inflation rate of 1.6% in September and a monthly consumer price index decrease, the cumulative effect of past price hikes means food remains considerably more expensive than in previous years.
