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Israeli supermarket prices jump 30% in past five years

  • By Al Mayadeen English
  • Source: Agencies
  • 13 Oct 2024 18:59
3 Min Read

As Israeli supermarket prices soar by 30%, even basic groceries are starting to feel like luxury items for the average Israeli consumer.

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  • A man walks past closed business due to the war on Gaza, in
    A man walks past closed business due to the war on Gaza, in Sderot, occupied Palestine, Sunday, February 11, 2024. (AP)

An analysis published on Israeli news website Calcalist on Sunday reveals that prices in Israeli supermarkets have surged by over 30% in the past five years, placing a growing burden on consumers despite efforts to reduce spending and switch to cheaper products.

The report details how prices for a typical shopping basket, which includes essential items such as dairy, dry foods, meat, and cleaning products, have risen sharply, with some items increasing by over 100%.

The analysis shows that since 2019, the cost of a weekly shopping basket has climbed by NIS 194.3 (approximately $50.52), reaching NIS 830.5 (around $215.93) — a 30.5% increase.

Annually, this translates to an additional NIS 10,000 (about $2,600) in spending per family.

Specific items have seen even steeper price hikes. For instance, the price of Yad Mordechai olive oil has increased by 53%, although its supplier raised prices by only 31%.

Similarly, the cost of Edge shaving gel has risen by 51.2%, while the importer raised its price by only 16%.

Corn schnitzel has also seen a consumer price increase of 35.6%, even though its supplier raised prices by only 15%.

Read more: War on Gaza shatters Israeli economy, risks spread of poverty

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The report points to several factors behind the price hikes, including the COVID-19 pandemic, which saw unprecedented demand for home consumption, and the occupation's decision to impose taxes on sugary drinks and disposable utensils.

It also highlights the role of major suppliers and food manufacturers, such as Strauss and Tnuva, who began raising prices in 2021 amid rising costs for raw materials and transportation.

Unchecked prices, opportunistic retailers

The gradual price increases have largely gone unchecked, according to the Calcalist analysis, as public attention shifted to pressing issues like the pandemic, political unrest, and the wars on Gaza and Lebanon.

Meanwhile, the regime's promises to curb food prices have yet to be fulfilled, leaving consumers to absorb the impact.

Retailers have also played a role in the price surge, with many chains taking advantage of rising costs to improve their profit margins.

The Calcalist analysis notes that retailers often mark up products beyond the suppliers' price increases, contributing further to the sharp rise in consumer costs.

The report further criticizes the lack of regulatory oversight, stating that officials within the Israeli leadership, including Economy Minister Nir Barkat, have failed to take effective action to halt the price increases, despite threats to impose stricter regulations on suppliers.

The analysis concludes that without decisive intervention and more stringent price controls, consumers will continue to face rising costs in their day-to-day shopping, making essential goods increasingly unaffordable for many Israeli consumers.

Read more: War is costing Israeli economy over $66.6 billion: Smotrich

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