Food Prices Hit Records: What Will Cost More in Israel Now

Global food prices are hitting record highs: the UN index reached 131.1 points, the highest since early 2023. In Israel, this could lead to higher prices for import-dependent products. Grains rose 3.4%, wheat 5.8%, sugar 5.6%, and vegetable oils hit a four-year high. Causes include Black Sea export disruptions and heat. Fertilizers are up 30% over the year. Meanwhile, meat fell 2.8% and dairy 0.7%. Price increases will reach Israeli stores with a delay of several months.

Global food prices have reached record levels, which could lead to higher food costs in Israel. The UN global food index rose to 131.1 points, the highest since early 2023. Particularly notable increases were seen in grains (index +3.4% month-on-month), wheat (+5.8%), sugar (+5.6%), and vegetable oils, which hit a four-year high. The causes include disruptions in exports from the Black Sea region and heat that damaged harvests in the Northern Hemisphere. Fertilizer costs have risen more than 30% over the year, adding pressure on producers. However, not all categories are getting more expensive: the meat price index fell 2.8% to 127.7 points, with chicken, pork, and beef cheaper, but lamb reached a record cost due to limited supply. Dairy products also became cheaper: the index lost 0.7% for the month, and year-on-year prices are about a quarter lower. The outlook is uncertain: global grain production could fall by 69 million tons, and a strong El Niño threatens yields. Rising global quotes do not mean immediate price hikes in Israeli stores—changes usually reach retail with a delay of several months, but prolonged increases in wheat, sugar, and oils could intensify price pressure on import-dependent categories.