Food and beverage prices in Israel are 52% higher than the average among developed countries, making it the second most expensive country in this category, following South Korea. This information comes from the Organization for Economic Cooperation and Development (OECD), as reported by Channel 12.
Bread and grain prices in Israel are particularly high, standing at 49% above the OECD average. Only Switzerland has higher prices in this category. Similarly, the cost of dairy and eggs in Israel is 64% more than the OECD average, again ranking second to South Korea.
Despite being staples in Middle Eastern cuisine, fruits and vegetables in Israel are priced 25% above the OECD average.
In the meat category, while there are three countries with higher prices than Israel, the costs are still significant at 64% above the OECD average.
Beyond food and beverages, car prices in Israel are the highest among OECD countries, at 52% above the average.
The telecom sector is the only area where Israel enjoys lower prices, coming in 30% below the Western average. This is attributed to a series of reforms in 2014 that boosted competition in cellular, broadband, and mobile internet markets. Conversely, Canada and the United States have the highest telecom prices, at 102% and 51% above the average, respectively.
The new data aligns with previous OECD reports. In 2022, Israel topped the list of developed countries with the highest cost of living, with prices 38% higher than the average.
Amid rising inflationary pressures, the Bank of Israel kept interest rates unchanged in May, citing ongoing geopolitical uncertainty and the economic impact of the prolonged conflict with the Hamas terror group. Economists predict that borrowing costs will remain high for the foreseeable future, driven by increasing defense expenditures.
Additionally, rising energy and food prices have heightened concerns about inflation. Data from the Central Bureau of Statistics shows that consumer prices in Israel accelerated faster than expected in the first half of 2024, primarily due to increased housing and transportation costs.
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