Food Prices in Israel Dropped More Than OECD Average in 2014

But despite a steep drop in world oil prices last year, energy prices in Israel fell only moderately.

Ilan Asayag

Food prices in 2014 dropped more sharply in Israel than in any other country belonging to the Organization for Economic Cooperation and Development, but energy prices in Israel declined less compared to other countries, a report by the OECD released on Thursday showed.

By the OECD’s reckoning, Israeli food prices dropped 4.1% in the 12 months through January, much more than the average of 2.3% for OECD member countries and 1% in the European Union, the organization, which includes many of the world’s richest economies.

But energy prices in Israel declined only 8.8% in the same 12 months, compared to 12% on average for OECD countries. In the United States they plummeted 19.6%, but in Israel high taxes only partly linked to the actual price acted to moderate the drop resulting from a decline in world oil prices last year.

All other prices, the OECD said, rose a relatively high 2.7%, compared with an OECD average of 1.7% and just 0.6% for the euro bloc countries. The difference was largely due to a steep increase in Israeli housing prices.