One after the other, leading food and toiletry suppliers have recently announced price increases, which led – as expected – to public outrage and even calls for a consumer boycott.
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Just a few months ago, similar attempts by companies to increase product prices were met by a determined fight by Finance Minister Avigdor Lieberman and Economy Minister Orna Barbivai. Yet, this time the government is less vocal on the matter, which is perhaps related to the upcoming election.
In an interview with Israel Hayom, Barbivai expressed optimism about the moves she promoted to lower the cost of living, which she said are bound to benefit Israeli consumers.
"I think we should look at the issue of the cost of living from a much broader perspective. I ask myself, how is it possible that for years every product that came into Israel had to be checked – which takes time and money – when the most advanced countries have long switched to a declaration model? We are removing these restrictions. This is a big thing we have done in the reform. It's been in place since June, and I can already see the benefits," she said.
"Another thing is the issue of standardization. It was part of the import reform. If there is an American and European standard that provides an answer to a certain product, in my opinion, in many cases, there is no need to make a requirement adjustment for Israel. Last year, the Economy Ministry went item by item, product by product, to see where such additional regulation was not required. The more restrictions we remove, the more importers we will have."
Q: But there is still the matter of exclusive importers.
"On the day the Knesset was dissolved, I passed a bill that talks about parallel imports, meaning that the big importers should not be able to swallow the small ones, and they will also be held accountable if they manipulate … No doubt, in the economy there is concentration in certain products, for example, food and toiletries, and it should be opened up to competition as much as possible."
Q: The question is whether the companies will adapt quickly to the high price level in Israel.
"Excellent question. The very entry of an international company, with its ability to manage so many branches in the world, will create objective competition. This is the way to deal with centralization – another company and another company. "
Q: What would you tell the consumer, when will we see a significant reduction in basic food prices?
"Price reduction is the result of removing barriers for importers, increasing competition for retailers and transparency for consumers regarding prices, and encouraging them to consume wisely. The more importers there are, the more competition we will see and the prices will drop. I can't tell you what day and time. You can tell the consumer 'don't buy, yes buy', and you can tell the consumer that we are working for his sake and remove restrictions. I call it cholesterol that has accumulated here over the years. In the end, I reach the consumer."
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