K A S H R U T . C O M_©

Israel: Israelis hit by soaring food prices as producers, grocers feast on wartime windfall

January 18 2026 - from the Times of Israel:

"Krembo is just one of many food items that have become more expensive for consumers in Israel, a trend that was supercharged during the two years of war following the Hamas attack on October 7, 2023, and that has continued since, contributing to the already sky-high cost of living.

"The Strauss Group and other food manufactures have attributed recent price hikes to what they say are significant and ongoing increases in production costs, including for electricity, municipal property taxes, wages and raw materials.

"But critics say the problem is weak consumer protections that give producers practical carte blanche to keep raising prices.

"Behind the wave of rising living costs were Israel’s largest food manufacturers, Tnuva, Strauss, and Osem-Nestlé, alongside the two main importers, Diplomat and Schestowitz.

"Over the past three years, the cost of a shopping basket with 50 basic goods has increased by about 20%, or by about NIS 250 ($80) a month for a family with two kids, according to Strum’s IEP, an independent research institute.

"Together with housing costs, steep food prices have been a main factor pushing families into deeper economic hardship. According to aid organization Latet, nearly 27% of Israeli families faced food insecurity in 2025, up from 21% a year earlier.

"The organization found that a family of four needed to spend NIS 14,139 ($4,480) a month in 2025 to meet bare minimum needs, including NIS 3,797 ($1,190) on food alone, up from NIS 12,938 per month ($4,100) in 2023, of which NIS 3,496 ($1,107) went to food. A survey by the group found that the high costs were forcing many to make ends meet by purchasing less food.

"A study conducted by Lobby 99 found that food suppliers and manufacturers hiked prices by an average of 10.1% since October 2023, led by Strauss which raised prices by almost 14%, followed by Tnuva at over 12%, and Osem-Nestlé at 13%.

"The war has been halted since October 2025, but there remain concerns that fighting could resume in Gaza, against the Hezbollah terror group in Lebanon, or against Iran.

"At the same time, inflation has been easing, and the shekel has been strengthening, hitting a four-year high against the dollar, which is making imports of raw materials cheaper. Independently of Israel, the prices of many raw materials, such as rice, sugar and cocoa, have been falling around the world.

"Yet local food prices have continued to go up, spurring State Comptroller Matanyahu Englman to urge lawmakers to do a better job in tackling the rising cost of living while criticizing the government for neglecting the matter during the war.

"Among the main supermarket chains, the shopping cart at Shufersal increased by almost 11% between October 2023 and December 2025, at Victory by 9.1%, at Rami Levy by 8.7%, at Yochananof by 7.4%, and at Osher Ad by 5%, according to the study by Lobby 99, which crowdfunds to lobby the government and the Knesset on the public’s behalf. While the hike for Carrefour Israel (formerly Mega-Yeinot Bitan) was even higher, those numbers were skewed by the fact that the chain was only entering the market in 2023.

"A comparison of cost of living in developed countries by the Organization for Economic Co-operation and Development lists Israel as the fourth most expensive place to live.

"When it comes to the food sector, prices are about 51% higher compared to EU member countries and 37% higher than among OECD countries, according to Israel’s state comptroller. For example, whole wheat bread was found to be 82% more expensive in Israel than in the US, England, New Zealand, and Spain, according to the report.

"Critics say the concentration of the market in the hands of a few major companies has dampened competition, meaning there is no force at play to drive down prices.

"In November 2024, a year into the war, Shufersal reported that it had more than quadrupled its third-quarter net profits from a year earlier, as the country’s largest supermarket chain benefited from price increases and strong demand for groceries. In the third quarter of 2025, net profits remained just as high."

"Strum believes that Israel can bring down the cost of living by 15% in the next two years if the government breaks up monopolies to create a competitive and open marketplace similar to the steps the government took in the telecom and cellular industry. "