Israeli food costs have drawn many vivid comparisons over time, yet a striking image from yesterday's Knesset Economic Affairs Committee meeting captured the disconnect between the weakening dollar and persistent rises in food and medicine prices better than most.

"They rise like rockets but descend like leaves," explained Ami Zadik, head of the Budgetary Control Department at the Knesset Research and Information Center. This phrase neatly sums up the experience of shoppers who watch costs climb rapidly but see little relief when conditions shift.

The issue extends beyond perception. Figures from the Knesset Research and Information Center reveal that as the shekel gains strength and worldwide commodity values drop, many nations benefit from lower grocery bills, while Israel moves in the opposite direction.

The report indicates that from August 2025 to April 2026, Israel's real food price index increased by 0.2 percent, compared to a 1.1 percent drop in the European Union over the same span. This difference fits a broader pattern: from January 2022 to October 2025, the global food commodity index declined by 3.6 percent, yet Israel's consumer food price index surged by 18.8 percent.

These trends stand out given the shekel's notable gains. Data show that between January 2025 and May 2026, the shekel rose 19.8 percent versus the dollar and 9.4 percent against the euro. In June, the average dollar rate hit just 2.91 shekels, the lowest since October 1993, while the euro averaged 3.33 shekels, a record low since its introduction.

One might expect these shifts to appear in shopping baskets. Instead, during this period of strong shekel performance, Israel's food price index climbed 2.6 percent, with fruit and vegetable costs rising 8.1 percent.

The key question at the meeting centered on delivering actual savings to buyers. MK Moshe Passal stressed that people want actions rather than reasons and called on the Finance Ministry, Economy Ministry, and Competition Authority to outline clear steps for boosting competition in food markets.

One idea focused on market concentration. Lobby 99's Boaz Ackerman pointed out that in 30 of 38 food categories, three firms control over 70 percent of sales. He noted that even as global coffee prices fell 22 percent, sugar dropped 12 percent, and cocoa declined 60 percent, local coffee and chocolate prices increased, urging limits on exclusive importers and separation of distribution from major suppliers.

Finance Ministry officials outlined their approach. Budget Department representative Ron Shenkman described efforts to ease agricultural import rules and advance reforms for simpler kosher product imports. The Economy Ministry highlighted the "What is good for Europe" reform as a model for competition gains and pledged similar barrier reductions in food sectors.

The Competition Authority detailed recent enforcement, including large fines on suppliers and blocks on anti-competitive mergers. It added that structural separation ideas are under review to avoid harming smaller suppliers dependent on current networks.

Industry representatives countered that importers and producers cannot bear full blame. They cited a 62 percent electricity price surge, 53 percent water cost increase, 27 percent rise in National Insurance fees, and 10 percent minimum wage hike, all of which offset shekel-related savings.

The session ended without a fresh government plan for quick price cuts. The Economic Affairs Committee required the Finance Ministry, Economy Ministry, and Competition Authority to deliver specific measures for greater competition and fewer barriers. Until then, the dollar may keep dropping, but savings will reach shelves as slowly as a leaf drifts down.