Israeli consumers are facing steep increases in food prices, with staples like the beloved Krembo treat now costing significantly more despite falling global prices for raw materials. The surge in costs has been attributed by producers to higher expenses for electricity, wages, and taxes, but critics argue that weak consumer protections and the dominance of a few large companies have allowed manufacturers and retailers to raise prices unchecked, especially during the wartime period following the Hamas attack in 2023.

Major food manufacturers and importers have posted record profits as families struggle with a cost of living that is among the highest in the developed world, with food prices up to 51% higher than in European Union countries. Calls for reform have intensified, with experts urging the government to break up monopolies and foster real competition, pointing to past successes in the telecom sector as a model.

While government officials have announced plans to encourage imports and reduce regulatory hurdles, many observers remain skeptical that these measures will lower prices for consumers unless the concentrated power of a handful of conglomerates is addressed. As economic hardship deepens, the high cost of living is prompting many Israelis to consider leaving the country, making affordability a central issue ahead of upcoming elections.