The Cost of Living and the 2011 Protests

Why Israel has high housing and food prices, how the 2011 cottage cheese boycott and tent protests pushed for reforms, and concentration in key industries.

Israel has a high cost of living.

Cottage cheese

In 2011, a consumer boycott of cottage cheese protested rising prices, forcing cuts.

Tent protests

In summer 2011, hundreds of thousands protested housing costs and inequality.

Causes

Concentration: a few conglomerates dominated key sectors.
Import barriers.
Limited land release for housing.

Reforms

The Trajtenberg Committee recommended reforms.
A 2013 law broke up business pyramid groups.
Import rules were eased.

Economics

Competition keeps prices in check.

The boycott

Shoppers stopped buying cottage cheese until dairies lowered prices.

Thinking high prices are only due to wages

Concentration raised prices.

Key takeaways

Israel has high living costs.
The 2011 cottage cheese boycott forced cuts.
Tent protests targeted housing.
Reforms targeted concentration.