Israel’s Cost of Living Soars Out Of Control


Yom Shishee

Friday

23 Cheshvan 5782

October 29 2021

 

 The News on the Israeli Street

The daily Corona update . . .

641 more Israelis were confirmed “yesterday” as having Covid-19. There are now 9,442 active cases in the country.

1,326,171 Israelis have contracted Corona since the pandemic began.

The positive test rate yesterday was 0.81%.

236 Israelis are in serious condition with another 136 in critical condition on ventilators.

8,081 Israelis have died–8 since yesterday.

Vaccinations:

6,227,581 Israelis have received one dose.

5,723,252 Israelis have received two doses.

3,933,391 Israelis have received three doses.

News on the Palestinian front in the last 24 hours . . .

A court in the Palestinian state of Gaza has sentenced 6 Palestinians to death for collaborating with Israel.

It was revealed yesterday that all of that money donated to Hamas in Gaza goes straight into the pockets of the Hamas leadership which now has assets totaling some half billion dollars around the world–including in Swiss bank accounts.

Palestinian terror in the last 48 hours . . .

Palestinian terrorists throwing Molotovs and “rocks” attacked Israelis on the Gush Etzion-Hevron Road, at Al-Aruv, between Shavei Shomron and Chumash (Israeli wounded), north of the T-N Junction, at Singil northeast of Ramallah, between Hermesh and Mevo Dotan, between Beitar and Al-Khader, near Har Homa north of the Liberman Bridge, and south of the Mizmoria Checkpoint among other places.

Palestinian terrorists attacked buses with Molotovs at the Avraham Hassano Junction southwest of Hevron, between Hizma and Anatot, between Hermesh and Dotan, and at Lupine’Aia. 

Palestinian terrorists throwing “rocks” wounded a farmer near Mitzpe Jericho. He is currently hospitalized.

Palestinian terrorists attacked the IDF post near Al-Fawwar, and an IDF patrol at Qabatiya south of Jenin.

Palestinian terrorists using Molotovs set fire to the area around the fence at Karmi Tzur.

Psagot went on lockdown last night after a car crashed through the security gate. Residents were warned to “lock houses, lock doors, close shutters, and turn off lights.” The community security personnel as well as IDF forces began a manhunt to no avail.

Another concession to the Palestinians . . .

For absolutely nothing in return except more violence, Israel has now agreed to mark steel, aluminum, pipes and paving stones produced in Palestinian factories in Bethlehem, Tulkarm, and Hevron with a stamp that says that the goods made there are up to Israeli “standards.” This stamp will enable Palestinians to better sell their products abroad and in Israel.

In fact, the decision to stamp these products will put many steel, aluminum, pipe, and paving stone companies in Israel out of business because they cannot compete with the cost of materials and labor in the Palestinian business sector.

All of which leads your humble servant to ask: why are we again cutting our own throats?

 

TODAY’S BLOG

Israel’s Cost of Living Soars Out Of Control

Yesterday Eyal Ravid, CEO and controlling owner of the Victory Supermarket chain posted this on his Facebook page:

“These things need to be written explicitly so that no one says they did not know. Hard days are ahead, we can say that we are facing a real tsunami of price increases.

Fuel prices are about to skyrocket, the government has passed a new tax on disposable utensils alongside an additional tax on sugary drinks. These are just some of the factors that will weigh heavily on the pocket of us all. 

And if that’s not enough, the corona and its effects are still here, suppliers have already announced that after a decade of not raising prices, they no longer have a choice. Before the corona, bringing a container with products from the Far East (especially China) to Israel by sea cost them NIS 7,500, and today the price already reaches NIS 59,000 per container. From Europe, the price jumped from NIS 2,500 to NIS 17,000 per container, and all of our wallets will absorb all of this.”

Take a look at these numbers from the excellent website Numbeo.com which very accurately tell the story of the cost of living here in Israel. The numbers are prefaced by the statistic that the cost of living is 22.98% higher in Israel than in the United States–actually, I will describe below why I think it is even higher than that.

Restaurants

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Range
Meal for 1 person, Inexpensive Restaurant 18.96 $ 12.6431.60
Meal for 2 People, Mid-range Restaurant, Three-course 78.99 $ 55.29126.38
McMeal at McDonalds (or Equivalent Combo Meal) 15.80 $ 14.2218.96
Domestic Beer (1 pint draught) 9.16 $ 4.7411.06
Imported Beer (12 oz small bottle) 8.85 $ 6.0011.06
Cappuccino (regular) 3.92 $ 1.906.32
Coke/Pepsi (12 oz small bottle) 2.83 $ 1.903.79
Water (12 oz small bottle) 2.17 $ 1.583.16

Markets
Milk (regular), (1 gallon) 7.11 $ 5.988.37
Loaf of Fresh White Bread (1 lb) 2.11 $ 1.273.73
Rice (white), (1 lb) 1.29 $ 0.771.72
Eggs (regular) (12) 4.10 $ 3.325.31
Local Cheese (1 lb) 6.83 $ 3.5812.90
Chicken Fillets (1 lb) 4.91 $ 3.446.45
Beef Round (1 lb) (or Equivalent Back Leg Red Meat) 9.84 $ 5.7314.33
Apples (1 lb) 1.49 $ 0.862.15
Banana (1 lb) 1.12 $ 0.722.15
Oranges (1 lb) 0.93 $ 0.432.15
Tomato (1 lb) 0.83 $ 0.431.43
Potato (1 lb) 0.66 $ 0.361.00
Onion (1 lb) 0.58 $ 0.290.86
Lettuce (1 head) 1.76 $ 0.952.84
Water (1.5 liter bottle) 1.45 $ 0.632.81
Bottle of Wine (Mid-Range) 12.64 $ 7.9018.96
Domestic Beer (0.5 liter bottle) 2.84 $ 1.904.31
Imported Beer (12 oz small bottle) 3.44 $ 2.214.74
Cigarettes 20 Pack (Marlboro) 11.06 $ 10.4312.64

Transportation
One-way Ticket (Local Transport) 1.86 $ 1.582.18
Monthly Pass (Regular Price) 67.30 $ 48.0394.47
Taxi Start (Normal Tariff) 4.42 $ 3.487.90
Taxi 1 mile (Normal Tariff) 2.03 $ 1.273.56
Taxi 1hour Waiting (Normal Tariff) 31.09 $ 18.9637.92
Gasoline (1 gallon) 7.36 $ 6.467.89
Volkswagen Golf 1.4 90 KW Trendline (Or Equivalent New Car) 42,338.74 $ 39,495.0944,234.51
Toyota Corolla Sedan 1.6l 97kW Comfort (Or Equivalent New Car) 43,107.48 $ 41,074.9045,814.31
Utilities (Monthly)
Basic (Electricity, Heating, Cooling, Water, Garbage) for 915 sq ft Apartment 236.47 $ 157.98429.71
1 min. of Prepaid Mobile Tariff Local (No Discounts or Plans) 0.13 $ 0.030.27
Internet (60 Mbps or More, Unlimited Data, Cable/ADSL) 29.64 $ 22.1239.50

Sports And Leisure
Fitness Club, Monthly Fee for 1 Adult 77.15 $ 37.92126.38
Tennis Court Rent (1 Hour on Weekend) 21.79 $ 15.8031.60
Cinema, International Release, 1 Seat 12.64 $ 12.6415.80

Childcare
Preschool (or Kindergarten), Full Day, Private, Monthly for 1 Child 946.79 $ 789.901,263.84
International Primary School, Yearly for 1 Child 9,580.12 $ 3,791.5323,381.10

Clothing And Shoes
1 Pair of Jeans (Levis 501 Or Similar) 98.86 $ 56.87157.98
1 Summer Dress in a Chain Store (Zara, H&M, …) 64.92 $ 31.6094.79
1 Pair of Nike Running Shoes (Mid-Range) 129.29 $ 78.99189.58
1 Pair of Men Leather Business Shoes 142.19 $ 94.79221.17
Rent Per Month
Apartment (1 bedroom) in City Centre 1,073.37 $ 726.711,737.78
Apartment (1 bedroom) Outside of Centre 865.18 $ 568.731,266.02
Apartment (3 bedrooms) in City Centre 1,656.36 $ 1,105.863,001.63
Apartment (3 bedrooms) Outside of Centre 1,373.14 $ 947.882,124.31

Buy Apartment Price
Price per Square Feet to Buy Apartment in City Centre 729.47 $ 440.301,467.67
Price per Square Feet to Buy Apartment Outside of Centre 580.48 $ 352.241,115.43

Salaries And Financing
Average Monthly Net Salary (After Tax) 2,705.25 $
Mortgage Interest Rate in Percentages (%), Yearly, for 20 Years Fixed-Rate 3.56 2.50

As you read through these statistics, you might have a hard time seeing that the cost to rent and especially buy an apartment here is outrageous. Not to mention a car. Most Israelis drive SUVs these days which average about 200,000 shekels ($62,500).

The bottom line is that with an average monthly salary of $2700 a month ($5400 for a couple), there is little left after paying rent, car payments, food, electricity, child expenses, etc. 

And now all of the prices you see above are going up.

This entry was posted in News and tagged active cases, al fawwar, apples, at Al-Aruv, at Singil northeast of Ramallah, between Beitar and Al-Khader, between Hermesh and Mevo Dotan, between Shavei Shomron and Chumash (Israeli wounded), bottle of wine, bread, cars, chicken, China, cinema seat, coke, concession, containers, cost of living, daily corona update, disposable utensils, domestic beer, eggs, electricity, europe, far east, fuel prices, gasoline, hamas, IDF, inexpensive restaurant, internet, Israel, levi jeans, manhunt, marlboro, mcmeal at mcdonalds, milk, molotovs, near Har Homa north of the Liberman Bridge, new tax, nike running shoes, north of the T-N Junction, numbeo, on the Gush Etzion-Hevron road, Palestinian state of gaza, Palestinians, pepsi, potatoes, preschool, Psagot, restaurants, sentenced 6 palestinians to death, sugary drinks, suvs, swiss bank accounts, taxi, tennis court rent, terror, tomatoes, toyota, tsunami of price increases, vaccinations, victory supermarket chain. Bookmark the permalink.

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