The cost of the basket of basic food products in Israel is among the highest in the world, claims the Federation of Israeli Chambers of Commerce, following a study intended to prove that policies raised the price of imported goods and reduced competition.
According to the Chambers of Commerce study, frozen French fries are 3.7 times more expensive in Israel than in Canada, sardines are twice as expensive as in the UK, and tomato paste is twice as expensive as in Ireland. A basket of basic canned foods, including tomato paste is 53% more expensive in Israel than in the UK and 36% more expensive than in Australia.
Israeli Chambers of Commerce chairman Uriel Lynn said, "The higher prices for basic foods in Israel are a direct consequence of a faulty tariff policy that grants excessive protection to local food products."
The study found that the average price of a basket of nine selected products was NIS 24.30, compared with NIS 23.30 in France (the second highest in the study), NIS 22.70 in Ireland, NIS 21.10 in Germany, NIS 19.90 in Canada, NIS 17.90 in Australia, and NIS 15.90 in the UK.
The price per net weight unit of sardines, green beans, extra virgin olive oil (cold pressed), and frozen French fries was higher in Israel than in the UK, Canada, and France.
A comparative calculation based on purchasing power parity (PPP) found that the basket of food products in Israel was 2.1 time more expensive than in the UK, twice as expensive as in Australia and Canada, 1.8 times more than in Ireland, 1.6 times more than in Germany and 1.5 times more than in France.
Published by Globes [online] - www.globes.co.il - on July 6, 2004