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NIS 5,000 a year: what is more expensive and how much will we pay? - Walla! Of money

2021-10-31T04:08:57.618Z


A significant wave of price increases is ahead of us, according to estimates it will amount to NIS 5,000 per year for the average family. Why prices are rising, when they are expected to rise, how much we will pay for food, fuel and electricity


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NIS 5,000 a year: what is more expensive and how much will we pay?

A significant wave of price increases is ahead of us.

It is estimated that it will amount to NIS 5,000 per year for the average family.

Why are prices rising, when are they expected to rise, how much will we pay from now on for food, fuel, electricity and more, and most importantly: what can be done?

Rami Levy, for example, is sure that despite everything: "Power remains in the hands of consumers"

Tags

  • Price increase

  • price increase

  • fuel

  • electrical power

  • poultry

  • mineral water

  • Rami Levi

  • Eyal Ravid

Sonia Gorodisky

Saturday, 30 October 2021, 11:19 Updated: Sunday, 31 October 2021, 05:59

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A massive wave of price increases is underway - and tomorrow we will feel its first signs.

The explosive combination of rising raw material and energy prices in the world, the shortage of workers in Israel and the new taxes imposed by the government on some of the consumer goods are the main factors that led to the wave of rising prices.

Experts estimate that starting next year, the monthly amount an average household will spend on consumption will increase by hundreds of shekels.



It should be noted that the prices of raw materials and transportation have already risen a few months ago, this is an ongoing global trend that has not yet materialized in Israel.

Suppliers were still full of old products and deals, retailers were content with cancellations and thus price increases were avoided.

This, among other things, against the background of the fear of harming their image following the public protest against the cost of living in Israel that was here in 2011.



But now there is no escape and the rise in prices is approaching by leaps and bounds.


What, how much and when?

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Fuel prices: a significant increase of 20 cents per liter (Photo: ShutterStock)

From 1 November 2021:

Fuel prices

are expected to

skyrocket by

more than 20 cents, so the price per liter of 95-octane self-service gasoline will cost more than NIS 6.60 - a three-year record.



The prices of disposable utensils

will rise close to 100%, depending on the new tax designed to change consumption habits.

mineral water.

More Israelis will soon be content with tap water (Photo: ShutterStock, shutterstock)

From 1 December 2021

Most

consumer product

prices

are expected to rise.

Some of the suppliers have already informed the retail chains about the price increase - including

Mei Eden,

whose products will rise by 1.7-5% starting December 1.



The company wrote in a statement to retailers: "For a long time, the Mei Eden Group has experienced a tens of percent increase in the production costs of its products, due to a significant increase in raw materials, transportation costs and the costs of local suppliers.



After a long period in which Mei Eden refrained from licking its products, the company decided on a moderate increase in the price list prices for the marketing chains so that it could continue to provide the best service and delicious water in Israel for our consumers.

The price of a package of 1.5 liter bottles will increase by 1.7% and the prices of individual bottle packages will increase by 5%.

"This is an increase of only tens of cents per package, and it is understandable that Eden Water products will continue to be sold at prices significantly lower than those of the sweetened beverages offered on the market."

Pasta: Even basic food is expected to become more expensive (Photo: ShutterStock)

From 1 January 2022

We will also have to pay more for

property taxes

- which will rise by 1.9%, due to the rise in the public wage index and the consumer price index.



The sugary drinks

will become more expensive due to the imposition of the government tax - the amount of the tax depends on the amount of sugar in the drink.

Beverages that contain more than 5 grams of sugar per 100 ml will be taxed in the amount of one shekel per liter. A sugary drink in which the amount of sugar is less than 5 grams will be taxed in the amount of 0.7 shekels per liter.

In other words, a 1.5 liter Coca-Cola bottle will cost the consumer NIS 8 instead of NIS 6.5.



The

electricity

tariff is also

expected to rise at the beginning of next year.

Despite the price of natural gas remaining stable in Israel due to the long-term contracts signed with electricity producers, coal prices have risen significantly - something that is also expected to raise household electricity tariffs.



Plus, Walla!

It was learned that Shestowitz, one of the largest importers in Israel, will also increase its prices from January 1.

This is a long line of well-known consumer products - and like

Brilla pastas, sauces, the Master Chef brand, Tuna Rio-Mara;

Toiletries like Colgate, Palmolive, Chic, Speed ​​Stick, Bloons and more;

Cosmetics - like Sisley, Revlon, Mont Blanc, Calvin Klein and more

.

Chen Herzog, chief economist of the consulting firm Bdo: "This is an increase of 5,000 shekels a year per household on average" (Photo: Yachz)

Expenditure of another NIS 400 per month

According to

Chen Herzog, the chief economist of the consulting firm Bdo,

"the current wave of price increases is expected to amount to about NIS 400 per month for a household with an average monthly expenditure of NIS 16,500 per month. That is, an increase of NIS 5,000 per year for an average household."



How do you explain the phenomenon?



The rising trend in world energy and raw material prices is related to the exit from the corona crisis, a kind of global "after-market" - the severe crisis during which massive activity was stopped was suddenly replaced by growth and rising demand, people returned to consumption. On the other hand, the supply lines were not adjusted to this, they were reduced during the crisis.


As a result, energy prices have soared, take for example the price of oil which soared from a zero price at the height of the crisis last year to more than $ 80 a barrel today. The prices of sea transport in containers, which constitute 90% of all shipments to Israel, have skyrocketed at a huge rate of three to seven times in less than a year.



All of these lead to an increase in the prices of products imported from abroad and also of those produced here in Israel from imported raw materials.



Beyond that, there are factors unique to Israel that increase the global wave of price increases. Prices accordingly.



The sickness model introduced during the Corona crisis has created an anomaly in the labor market - a record number of job vacancies (not just in high-tech) along with a high unemployment rate that refuses to fall. Although sickness benefits have already been discontinued for most of the unemployed, the labor market is still faltering and having difficulty returning to pre-crisis levels



. Some of them have returned to work only part-time and supplement their income by working in the black.



“We are still paying the price of the Khalat today.

It's like accustomed to the ultra-Orthodox that you can live without working, so in Corona the government did a huge scale experiment on hundreds of thousands of Israelis - give them money and say stay at home and do not work.

Now, suddenly tell them to go back to work.

Those who used to not work now demand more money to return to work.

This is a disease unique to Israel, "Herzog explains.

Rami Levy: "Power in the hands of the consumer" (Photo: Yotam Ronen)

Rami Levy: "The consumer must be smart"

so what are we doing?



Retailers recommend buying smart.

"The power is in the hands of the consumer. If there is an expensive product, you do not have to buy it. There is a wide variety on the shelf, there are colors, there are similar products. There is also the private label which is of excellent quality and does not exceed the same price. You have to be smart and not buy at any price, "says Rami Levy in a conversation with Walla! Money.



Levy continues: "We will definitely see the wave of price increases. All imported products are going to go up."

However it promises that "baby products will not go up so fast, their gross profit is high anyway".

Chicken price: rose before the holidays - and will probably remain high (Photo: ShutterStock)

The chicken is getting more expensive because of ostensible agreements between the breeders and the slaughterhouses

Regarding the prices of poultry that rose before the holidays but have not yet been reduced, Levy says that "there are agreements between breeders and slaughterhouses, which divide the market between them, and the price goes up. Once there is massive competition, then prices go down. Poultry is supply and demand. "So prices are going up," he explains.

According to Levy, the prices of dairy products have not yet risen, but there are certain companies that "cancel promotions."

Eyal Ravid, CEO of the Victory chain: "Keep Excel spreadsheets of expenses and income" (Photo: Omer Wieder)

"Be smart consumers"

The

CEO of Victory, Eyal Ravid

, last week warned consumers against a "tsunami" of rising prices, has a similar message to consumers.



"Consumers will be smart!

Buy right!

"Plan your shopping, make lists in advance, check what goes into your cart and what you eat at home, keep Excel spreadsheets of expenses and income," Ravid wrote on his Facebook account.

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Source: walla

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