A new wave of price hikes hit Israel last December, with food manufacturers and importers raising between 15% and 25% on some products. Companies say they are forced to increase prices, due to rising prices for raw materials from suppliers against the backdrop of Houthi attacks on ships in the Red Sea.
The market accuses the Israeli government of causing the price hike, starting with the value-added tax rate of 17%, to taxes, fees, halal requirements (in the Jewish religion), and high energy and fuel costs, all of which contribute to high prices.