Israeli Food Prices Soar Nearly 20% in Four Years, Study Finds

The price increases were observed across all sales channels, with neighborhood stores experiencing a 19.6% rise compared to 4.3% in the earlier period. Online grocery platforms saw a 19% increase, up from 4.1%, while discount chains experienced a 14.5% jump, compared to 2.8% previously. These hikes translate to hundreds of shekels added to a family's monthly grocery bill, with Shufersal Deal leading the retail surge with a 22.7% increase, equivalent to an additional 231 shekels. Rami Levy remains the cheapest supermarket chain despite a 10.3% price increase, while Tiv Ta'am and Shufersal Deal are the most expensive.

Researchers attribute the dramatic rise to a regulatory and public vacuum, alongside increased production costs, rising VAT, and higher costs for municipal taxes, water, electricity, and regulated goods. Globes reported that researchers also noted general inflation of approximately 12.5% during the same period explains a significant portion of the food basket's price hike. The study highlights that consumer vigilance, which had been effective in curbing price increases since 2011, became less impactful in 2023. Professor Ater warned that government action is necessary to address market power and prevent further price hikes, which disproportionately affect low-income families.