Israeli food prices outstrip Europe by far

Food prices have risen in Israel by 12.7% since 2005, and in the euro bloc countries by just 1.1%.

A new study by the Knesset Research and Information center confirms "Globes" findings that food in Israel is far more expensive than in Europe. The research found that over the past five and a half years Israeli food prices have risen by far more than in Europe and the US.

From 2005 to May 2011, food prices in Israel rose by 12.7%, while in the 17 euro bloc countries prices rose by just 1.1%.

The rise in prices in Israel was three and a half times higher on average than the 3.6% average price rise in food recorded in the 27 member states of the European Union.

Moreover, in a period when Israel saw a sharp rise in the consumer food price index, there were some western countries where the index fell. In Switzerland, for example, food prices fell by an average of 4.7%, and in Greece they fell by 3.5%, while in Ireland, Spain, and Norway prices were eroded.

Food prices to the consumer rose not only compared with other countries, but also compared with the indices of agricultural inputs and the food industry output index. While these two indices rose by a similar amount, the food prices index continued to rise sharply.

The research found that over the five and a half years covered, the price of natural yoghourt rose 46.2%, the price of cottage cheese rose 41.3% and the price of white cheese rose by 32.3%. Over this period sour cream and a carton of milk rose by 15.5%.

Published by Globes, Israel business news - - on July 4, 2011

© Copyright of Globes Publisher Itonut (1983) Ltd. 2011

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