More than 3 out of every 5 Israelis report that their financial situation has gotten worse since the start of the year, according to a new survey conducted by the Histadrut Consumer Authority. The survey’s results seem to suggest that the regressive tax increase and increased cost of government services enacted in January are taking their toll on regular Israelis.
The study was published to mark World Consumer Rights Day, which takes place annually on March 15. It was conducted in collaboration with the Geocartography Institute by polling 600 respondents aged 18 and older, representing the general population in Israel.
Approximately 61% of respondents said they have cut back on purchasing goods and services due to rising prices. Additionally, 17% reported having to forgo medical treatment or medications at least once.
Nearly 60% of the respondents said they rarely manage to save money by the end of the month, if at all, and more than 11% stated they had to take out a loan for basic living expenses. The financial strain is also impacting Israelis’ mental health, with 72% reporting increased stress due to rising costs and the high cost of living.
The survey also found widespread mistrust toward businesses and authorities. About 89% of respondents believe retail chains exploited the increase in VAT to raise prices, while 66% feel businesses have treated them unfairly. More than 90% believe there should be stricter enforcement, particularly regarding price labeling, misleading advertising, and the right to cancel transactions.
These economic difficulties and lack of trust are influencing consumer behavior. Around 44% of respondents said they carefully plan their monthly expenses, focusing on essential costs, while 73% review their receipts after shopping.
“There isn’t much for Israeli consumers to smile about on World Consumer Rights Day 2025,” said Yaron Levinson, head of the Histadrut Consumer Authority. “Consumers are facing constant price hikes and perceive businesses as unfair—especially regarding excessive price increases following the 1% VAT hike. They also lack confidence in regulators to protect them and expect much stronger oversight and enforcement. Given this reality, consumers must make better use of the tools available to them and take a more active role in their purchasing decisions.”
