Food Prices Policy in Israel: A Strategic Instrument

Abstract: The goal of this research is to demonstrate a significant importance of state policy of food prices supervision in Israel. The article begins with a detailed discussion of the healthy food basket’s components, based on the Israeli Ministry of Health recommendations. Next, we present the prices of the goods included in the basket, and a calculated estimate of the per capita cost of funding the basket. Based on this cost figure, we assess the economic ability of Israeli households to purchase the basket. The results show that two lowest quintiles would have trouble paying the price of a basic health food basket. Further, it describes the food prices in Israel and its significance, Israel’s food market and the major regulatory tools associated with the food market. In the end, we define the need for short-term and longer-term regulation of food costs, and the necessity of expanding competition in the food market.