In a tough year marked by widespread price increases, especially as January 1 approaches with more expected hikes, pasta lovers in Israel are getting a break.
Food importer S. Schestowitz has announced a 10% average reduction in the price of Barilla pasta. This price cut applies to both the classic pasta series, which accounts for most sales, and the gluten-free series. The reduction affects the wholesale prices paid by retailers and is expected to be reflected in the final price for consumers.
The price cut is possible due to a global decrease in wheat prices. However, it comes after a series of price hikes earlier this year, which pushed consumers to switch from Barilla to competing brands.
At the beginning of 2023, Schestowitz raised its product prices by up to 20%, with Barilla pasta prices increasing by 13%.
This latest move is a refreshing change in Israel's consumer market, where recent news has been dominated by price hikes, shrinking product sizes, and more. All of this is happening ahead of January 1, which is expected to bring sharp increases across various sectors.
Why the concern? If no policy shift occurs, early 2025 will see a VAT increase to 18%, further straining consumers already struggling with the high cost of living. This VAT hike is expected to drive up prices across goods and services, affecting everything from groceries and clothing to fuel. Household expenses could rise by hundreds or even thousands of shekels annually.
Schestowitz stated: “In recent years, we’ve faced price increases from our international suppliers. We’re pleased to now lower retail prices in a way that benefits Israeli consumers. The new prices will be implemented in retail markets nationwide in the coming weeks.”