The Knesset Economics Committee held a hearing on Wednesday on the failure of food and pharmacy prices to reflect the dollar's decline against the shekel, which the panel said harms consumers. Data from the Knesset Research and Information Center showed food prices in Israel rose 0.2% from August 2025 to April 2026, while in the European Union they fell 1.1%. The committee has asked the Finance Ministry and the Competition Authority to submit a plan for addressing concentration in the food sector.
The Knesset Economics Committee, chaired by MK David Bitan, convened on Wednesday to examine why food and pharmacy prices in Israel have not reflected the sharp decline of the dollar against the shekel over the past year. Committee members cited data from the Knesset Research and Information Center showing that between August 2025 and April 2026, food prices in Israel rose 0.2%, while prices in the European Union fell 1.1% during the same period. The committee said consumers are effectively paying more despite the stronger shekel, which should have lowered import costs. The committee has formally requested that the Finance Ministry and the Competition Authority develop a plan to tackle concentration in the food sector, which lawmakers argue limits competition and keeps prices artificially high. No timeline was given for the submission of the plan. As The Zioneer previously noted in related coverage, the issue of price rigidity in Israel's concentrated food market has been a recurring concern for the committee.
2 developments
- DevelopingShekel softens slightly; dollar and euro edge up in Tuesday fixing
- DevelopingManufacturers warn of closures as shekel strengthens, demand govt action
- StrongShekel strengthens as Bank of Israel fixes dollar at 2.907 after technical glitch fix
- DevelopingFinance Ministry drafts aid program amid dollar collapse
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