Israel tops OECD for cost of living

Israel's high cost of living, which surpassed Switzerland, can be attributed to the balance of payments and influx of foreign currency in the high-tech sector, according to a Hebrew University expert.

Israel has the highest cost of living among all OECD nations, but the comparison to the OECD average is misleading due to the strengthening of the shekel, and next year's numbers are likely to look better due to the shekel's devaluation, which will make prices appear lower in international currencies. The real issue lies in the affordability of consumption baskets relative to median incomes and the neglect of vital infrastructure, such as education and transportation, which contribute to low incomes and high prices. The State Comptroller report highlights the escalating cost of living in crucial sectors like the dairy industry and the real estate market, with significant price increases and housing shortages.

Israel's annual inflation increased to 4.1% in August, surpassing the central bank's target range of 1%-3%, as consumer prices rose by 0.5%, driven by increases in the cost of fresh vegetables, culture and entertainment, transportation, and housing.