The severity of economic crises within the Israeli occupation state is escalating as a result of the continuous repercussions of the military aggression on the countries of the region, as markets have begun to witness a new wave of price increases. Economic sources reported that Israelis are about to face sharp increases that include vital sectors, most notably fuel, the price per liter of which will reach 8.07 shekels, in addition to the rise in prices of essential dairy products.
Professional estimates indicate that the consumer price index will see a sharp jump ranging between 1.3% and 1.5%, bringing the specter of inflation back to the forefront. This expected rise will make the annual inflation rate exceed the 2% barrier, which puts significant pressure on the Monetary Committee of the Bank of Israel, and will likely prevent it from deciding to cut the interest rate in the foreseeable future.
In the food sector, major dairy companies such as 'Tnuva', 'Tara', and 'Gad' announced new price lists that will come into effect immediately after the Jewish holidays. These increases will include long-life milk, cheeses, and butter at varying rates, with the companies justifying this step by the rising production costs and the current security conditions that have affected supply chains.
Israeli markets are suffering from a severe shortage of fruit and vegetable imports due to the cessation of supplies that previously came from Turkey, Jordan, and the Gaza Strip. The reliance on expensive European alternatives, along with damage to crops in confrontation areas on the Lebanese border and in the Gaza envelope, has led to an unprecedented surge in agricultural product prices.
The housing sector was not immune to this wave, as economic sources expect rental prices to rise by up to 6% in the coming months, especially in the central region. This increase coincides with the season for renewing contracts and increased demand, at a time when traders are refraining from lowering prices of imported goods despite fluctuations in the dollar exchange rate.
Regarding energy and transportation, serious concerns arise from the continued tensions in the Strait of Hormuz, due to their direct impact on global oil prices and shipping costs. This concern is clearly reflected in air ticket prices, which have reached record levels, especially with Israeli airlines exclusively operating flights to several international destinations after global companies suspended their flights.
Reports clarified that these successive increases will burden Israeli families, especially those with limited incomes, as the increase in the monthly consumption basket is estimated at tens of shekels. Other companies are expected to continue raising prices of unregulated products by up to 5% in the next two months, deepening the living crisis.
In light of these facts, banks and investment companies have updated their inflation forecasts for 2026, rising to levels ranging between 2.3% and 2.5%. This bleak picture indicates that the Israeli economy will remain under the weight of military and political pressures, which reduces the chances of a rapid recovery and continuously weakens the purchasing power of settlers.
The Israeli war on Iran has temporarily ended, but the economic war is still raging, and price increases will renew strongly.
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A wave of high prices hits Israeli markets: record increase in fuel, food, and rent prices