Israeli Food Prices Surge Five Times Faster Amid Limited Competition and War Costs

The study found that prices in neighborhood stores rose by 19.6% and online prices by 19% in the last four years, compared to just 4.3% and 4.1% respectively in the previous four years. Discount stores saw a price increase of 14.5% in the recent period compared to 2.8% previously, with Shufersal Deal experiencing the highest price hike among the studied chains at 22.7% over the past four years.

Specific products saw substantial price hikes, such as a 100-gram bar of Elite milk chocolate rising nearly 78% from 5.21 to 9.26 shekels, a pack of Maadanot cheese burekas increasing by 47.5%, and a jar of Taster's Choice coffee rising by 26.1%. Researchers noted that while global food commodity prices fell by 5.7% between January 2022 and June 2025, Israeli retail prices rose by 16.3% during the same period.

While the war that began in October 2023, VAT increases, and taxes contributed to the rising costs, the researchers suggested that retail chains may have exploited the nation's focus on the war to drive up prices. Professor Ater stated that genuine government action, including promoting competition and removing import barriers, is necessary to curb and potentially lower prices, warning that low-income families are disproportionately affected.