Big Mac Index: Israel ranks second in the world for food prices

Israel ranks second in the world for food prices according to The Economist's Big Mac Index, trailing only Switzerland. Israel's figure is $7.67 versus $9.04 for Switzerland. Two years ago, a Big Mac in Israel was cheaper, but with the exchange rate at 3 shekels per dollar, the price jumped by a quarter. Israel is also expensive by other indices: Deutsche Bank places Tel Aviv 11th, and OECD and IMF rank it second after Switzerland. Research by Dr. Menachem-Karmi attributes high prices to kashrut, VAT, and bureaucracy.

Israel ranks second in the world for food prices according to the Big Mac Index, compiled by the British weekly The Economist. The index, launched in September 1986, compares the price of a Big Mac across countries by dividing the local price by the dollar exchange rate. In the current ranking, Israel, with a figure of $7.67, trails only Switzerland ($9.04), ahead of the UK ($7.40), the EU ($7.08), and the US ($6.22). Two years ago, at the end of July 2024, when the dollar exchange rate was about 3.8 shekels, a Big Mac in Israel was cheaper, but now, at a rate of 3 shekels, the dollar price of a portion has jumped by a quarter. The Economist's editors note sharp currency fluctuations as evidence of an imbalance in the international monetary system. Israel's high ranking is confirmed by other indices: Deutsche Bank places Tel Aviv 11th for the cost of a food basket, and according to OECD and IMF rankings, Israel is second after Switzerland. Research by Dr. Sarit Menachem-Karmi from Reichman University shows that food basket prices in Israel are 27% higher than the average of five small wealthy European countries, and attributes this to kashrut, VAT, and bureaucratic barriers.