Cost of Living in Israel Continues to Rise

Israelis are facing rising costs for many basic commodities, the Central Bureau of Statistics says, a phenomenon that continues to grow.

The average inflation rate in Israel stood at 5.3% at the end of 2022, following a 2.8% increase a year earlier, its highest level since 2008. The consumer price index rose 0.3% in December 2022, driven by increases in housing, food and transportation prices, according to the CBS.

“The increase in the cost of living is mainly due to the rise of the high-tech industry in Israel and the very large foreign investments that increase the demand for shekels,” said Eyal Winter, a professor of economics at the Hebrew University of Yerushalayim.

Two other main reasons have caused such increases: the problem of supply chains from COVID and the rise in raw materials since the start of the Russian invasion of Ukraine.

In the Palestinian Authority, it was noted, the situation is similar. The price of two pounds of fresh chicken, for example, which is a staple on Palestinian tables during the month of Ramadan, has risen by at least 50% compared to last year. The cost of food in the PA rose by an average of 5.39% in February 2023 compared to the same month last year, according to the Palestinian Central Bureau of Statistics.