Israelis cutting back on spending as cost of living crisis deepens

Nearly one in three Israelis, and 40 per cent of those aged 25-44, cite the country’s high cost of living as the issue that most worries them, above even security and concern over democracy, according to a survey published this week.

Eighty per cent of respondents polled by the Israel Democracy Institute (IDI) said they have had to give up one or more item of expenditure, particularly leisure activities and vacations, and 30 per cent had to refrain from buying more essential items such as food and other basic products.

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An Israeli protest over the cost of living (Photo: Flash 90)

Of those concerned most about the high cost of living, around two-thirds said it was food prices that is the most significant factor in the crisis, while around half said it was housing costs, and 29 per cent cited indirect taxation.

The majority of the public, 60 per cent, believe that the government is to blame for the current cost-of-living crisis, while the share of those worried about the issue declines with age.

Conversely, the share of those worried about issues relating to the consequence of the proposed judicial reforms increases with age.

Most awarded the government a grade of “unsatisfactory” or “fail” for its policies aimed at lowering the cost of living, housing costs, and reducing social inequality. Around two-thirds think that Israel’s economic situation has become worse or significantly worse since the same period last year, and around half report that their personal financial situation has worsened.

After the high cost of living, by a fair margin, are three issues of concern: tensions between different groups within Israeli society (17 per cent), the future of Israel as a democratic state (15 per cent), and personal security (15 per cent).

The share of respondents worried about inter-group tension within Israel or the future of Israeli democracy, rises with income level.