Photo Credit: Yossi Aloni / Flash 90
People shop for groceries at the Rami Levy supermarket in Modi'in on February 1, 2022.

Israelis are going to be paying more – a lot more – in 2025, due to a combination of significant price hikes and government cuts approved in the state budget that passed its first reading Monday night in the Knesset.

The monthly expenses of an average family of five with a monthly income of NIS 17,000 ($4,722) could jump by NIS 831 ($231) next month, totaling an annual expenditure of NIS 10,000 ($2778).

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• Property taxes (arnona) will rise by around 6 percent (NIS 27.50) per month
• Electricity bills will jump by some 3.8 percent (NIS 19) per month
• Water bills will increase by one percent (NIS 5) per month
• Bituach Leumi taxes for a family will rise by NIS 140 per month
• Family HMO health taxes will increase by NIS 40 per month

In addition, the average shopping basket at Israeli supermarket chains is estimated to jump by 15 percent — some NIS 600 — per month due to price hikes by food suppliers, according to Israel’s Channel 12 News.

Osem-Nestle, one of the largest food producers in the country, is expected to raise its prices by around nine percent for products such as chocolate, coffee and ketchup.

Strauss, another major food producer, is set to raise its prices by up to 18 percent on chocolate and coffee.

Sales tax (VAT) will rise by one percent, adding to the cost of everything else.

The cost of public transportation will increase by two shekels per trip as well.

he NIS 619 billion 2025 budget is NIS 105 billion higher than the 2024 budget, while setting a deficit target of 4.4 percent of GDP as part of its effort to reduce spending by some NIS 37 billion.


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Hana Levi Julian is a Middle East news analyst with a degree in Mass Communication and Journalism from Southern Connecticut State University. A past columnist with The Jewish Press and senior editor at Arutz 7, Ms. Julian has written for Babble.com, Chabad.org and other media outlets, in addition to her years working in broadcast journalism.