Meteoric Surge: Food prices rose by nearly 20% under Netanyahu’s current government term - new study

Almost a fifth more for the same shopping basket: Food prices in Israel have risen sharply over the past four years, according to a new study from the Faculty of Management at Tel Aviv University. The study tracked the prices of a basket of 80 popular products between September 2022 and August 2026, and compared them to the four years prior, from September 2018 to August 2022. According to the findings, the price of the basket increased by 19.6% in neighborhood stores, by 19% in online channels, and by 14.5% in discount branches. In the previous period, however, the price increase amounted to 4.3% in neighborhood stores, 4.1% online, and 2.8% in discount chains. According to the study, the rate of price increase over the past four years is nearly five times higher than in the preceding period. Suggested articles Israeli gasoline prices to equal 2012 record after new increase | i24NEWS S&P cuts Israel’s long-term credit ratings citing MidEast escalation | i24NEWS Israelis rush to supermarkets fearing potential Iranian attack | i24NEWS The price increase is also noticeable in specific products: a 100-gram Elite "Para" chocolate bar has become about 78% more expensive in neighborhood stores, a package of 800-gram Maadanot cheese borekas has risen by about 31%, and a kilogram of Sugat classic jasmine rice has increased by 17.7% in discount chains. Significant gaps were also found in the comparison between supermarket chains across the two periods. At Shufersal Deal, prices rose by about 22.7% over the past four years, compared to about 0.6% in the previous four years. At Victory, there was an increase of about 16%, compared to 1.2% in the previous period, and at Rami Levy, prices rose by 10.3%, compared to 6.1%. At my Shufersal, prices have increased by 19.6% in the recent period, compared to 2.3% in the previous period. At Freshmarket, there was an increase of 19.6%, compared to about 6.3% in the four preceding years. Food prices soar as war, sanctions and blockade batter economy in Iran A similar trend emerges from online purchase data. At Rami Levy Online, prices rose by 14.1%, at Shufersal Online by 24%, and at Victory Online by 18.6%. In the earlier period, price increases at these chains amounted to 9.3%, 0.1%, and 3.8%, respectively. The research also illustrates the gap in shekels: at Shufersal Deal, the basket became more expensive by 231 shekels in the past four years, compared to just six shekels in the previous period. At Shufersal Sheli, the price increase totaled 222 shekels, compared to 26 shekels previously. At Victory, the basket rose by 160 shekels, compared to 12 shekels in the earlier period. Prof. Itai Ater from the Faculty of Management at Tel Aviv University notes that among the factors that may explain the price increases are the rise in VAT rates and the increase in property tax, water, fuel, and electricity tariffs, alongside the rise in the prices of regulated products. On the other hand, the strengthening of the shekel and the decrease in the global food price index, which peaked in 2022, reduced import prices and could have moderated the price hikes. According to Ater, the changes in production and import costs alone cannot explain an increase of about 20% over four years. He also points to the lack of ongoing governmental action regarding the issue of the cost of living, and the fact that public and media attention is directed towards other topics. In such a situation, After says, companies in the food market may take advantage of the opportunity to raise prices. The professor also emphasizes that the gap between the moderate price increases in the early period and the recent surges in prices indicates that the high cost of living is not an inevitable fate. According to him, an effective fight against the phenomenon requires government mobilization, the promotion of structural reforms, addressing centers of power, improving regulation and removing barriers, alongside broad public and media discourse.