Discounts Proved a Trap – Food Prices in Israel Have Begun to Rise
A study has shown that price reductions on some goods in Israeli supermarkets have not led to an overall decrease in shopping costs. According to researchers, the cost of many other products has actually risen…
Assessment
A study by Tel Aviv University researchers finds that a government-backed discount program in Carrefour supermarkets lowered prices on a fixed basket of 100 products by about 35 percent, but other items rose in cost, canceling out overall savings for shoppers. The real risk is that consumers feel price relief on headline items while total grocery bills stay flat or increase, masking inflation. Watch for whether regulators or competing chains respond with broader price monitoring or expand the fixed-price model to more products.