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Israeli Food Prices Rose 14.5% to 19.6% Over Four Years, TAU Study Reports

A reported Tel Aviv University study found a fixed 80-product food basket rose 19.6% in neighborhood stores, 19% online, and 14.5% in discount chains over four years.
From TheFinanceBase Team4 min to read
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A reported Tel Aviv University study found that prices for a fixed basket of 80 popular food products rose between 14.5% and 19.6% across Israeli shopping channels from September 2022 through August 2026. Neighborhood-store prices rose 19.6%, online prices 19%, and discount-chain prices 14.5%. The headline’s “19%” is a rounded summary, not a single increase shared by every channel.

What the four-year price figures measure

According to contemporaneous reporting by The Jerusalem Post and N12, Tel Aviv University’s Prof. Itai Ater and doctoral student Adi Omer tracked a fixed basket of 80 popular products using Pricez price data. The reported study followed those products across approximately 700 stores of major retail chains over eight years, comparing monthly average prices after discounts.

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The four-year results cover September 2022 through August 2026. The preceding comparison period is September 2018 through August 2022. These are reported changes in the selected basket, not a measure of every food item sold in Israel or of the amount every household spent.

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Shopping channel Reported increase, Sep. 2022–Aug. 2026 Reported increase, Sep. 2018–Aug. 2022
Neighborhood stores 19.6% 4.3%
Online shopping 19% 4.1%
Discount chains 14.5% 2.8%

The figures indicate a marked acceleration compared with the previous four-year period in all three channels. They do not imply that every product rose by the channel average, or that a shopper’s personal grocery bill increased by precisely the same amount.

What was in the basket—and why product examples differ

The reported basket combined branded packaged goods with fresh and dairy products. Examples cited include Elite Cow Chocolate, Taster’s Choice coffee, Sugat jasmine rice, Ma’adanos cheese burekas, Materna baby formula, Nutella, and Hellmann’s mayonnaise, alongside dairy, fruit, and vegetables. These examples describe items tracked; they are not recommendations.

Individual product changes could differ substantially from the basket-wide average. The Jerusalem Post report cites an increase of nearly 78% for a 100-gram Elite milk-chocolate bar in neighborhood stores. That is a product-specific figure, not the increase for the whole basket or for chocolate generally.

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Retailer growth rates do not identify today’s cheapest shop

The Jerusalem Post reported different basket growth rates among named retailers: 22.7% at Shufersal Deal, 16% at Victory, 10.3% at Rami Levy, and 8.5% at Yohananof. These are changes over the reported study period, not current basket prices. A chain with slower growth is not necessarily cheapest today, because the comparison does not establish its current total against competitors.

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The same report said Rami Levy had the cheapest basket among the discount chains studied. That is a study-period finding, not a live price check or a guarantee about an individual shopping list.

How this compares with inflation and producer prices

Globes reported that Israel’s consumer price index rose about 12.5% over the study period. That provides broader inflation context, but CPI and the reported TAU basket are different measures: one tracks a broad price index, while the other follows selected products and shopping channels. The difference between them should not be treated as a precise measure of how much grocery prices outpaced inflation for every household.

The Jerusalem Post account also cited an approximately 2% increase in the food-manufacturing producer price index over the latest four years, based on Central Bureau of Statistics data. This is another distinct index, not a supermarket-price measure. The gap between producer prices and the study’s retail basket does not, by itself, show that manufacturers or retailers captured the difference as profit.

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What the results say about household budgets—and what they do not

The burden of higher food prices can be uneven because food takes a different share of household budgets at different income levels. The Jerusalem Post report, citing figures presented by the researchers, says food including fruit and vegetables accounted for 18.5% of monthly household spending in the lowest income quintile, compared with 12.3% in the highest. These figures describe budget shares, not the amount any particular family spends.

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The reported tracking documents price changes; it does not isolate their causes. The Jerusalem Post account attributes to the researchers discussion of factors including VAT, municipal property taxes, utilities, fuel, controlled-price goods, currency movements, global food prices, and market concentration. Those are proposed context and explanations, not a causal breakdown established by the basket figures alone.

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Ater argued that government action, stronger competition, removal of barriers, and attention to market concentration are needed to curb prices. The report quotes him saying, “The cost of living is not an inevitable fate.” That is his policy view; the price comparison itself does not establish which intervention would change prices or by how much.

How to use the figures when planning grocery spending

For a household budget, the study is best read as evidence that the cost of a particular measured basket rose sharply—and that the rise differed by channel—not as a forecast of an individual’s next bill. Your own change depends on what you buy, where you shop, quantities, promotions, and substitutions. Retailer growth rates from the study period cannot replace checking current prices for the products on your list.

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