Consumer Prices

How many times have you seen a "sale" label and assumed it was the lowest price available? We analyzed Wolt's "duty-free" home product offers and found that in many cases, the same items are available elsewhere for significantly less, despite the 18% VAT exemption.

International airlines are gradually returning to Israel, increasing air cargo capacity and driving down transport costs. However, despite these lower logistics expenses, consumer prices remain high, failing to reflect the market stabilization.

In July, the consumer price index rose by 0.3%, bringing annual inflation down to 1.5%—the lowest rate since May 2021. The Israeli economy demonstrates resilience, not generating inflation despite the ongoing war.

The attempt to lower canned tuna prices by removing customs duties led to a meager 1.1% reduction in consumer prices. Savings for households are estimated at 3.35 shekels per person annually.

The strengthening of the shekel against the dollar and euro has significantly boosted the gross profitability of food importer Wilifood. Despite these gains, the company has not lowered consumer prices.

While Israelis continue to go abroad in large numbers, Yoniin Penning, the bank’s chief strategist, warns against the effects of global inflation and explains which prices in the country are expected to change soon.