One of Israel's biggest supermarket moguls on Wednesday cited excessive government regulation as the main culprit behind Israel's sky-high cost of living problem.
Speaking to Ynet, Rami Levy, the owner of a discount supermarket chain that bears his name, said that immoderate government intervention is the reason prices for basic consumer goods in Israel are up to 30% more expensive than in other Organization for Economic Co-operation and Development (OECD) member states, and also why prices have been climbing rapidly over the past year.
Who do you think is to blame for prices going up in most retail chains?
"The state. There are customs and taxes all around that shouldn't exist. Once they remove those, it will create greater competition and would allow a more free import," he says.
"Prices will drop precipitously because there will be a free economy. At the end of the day, prices here are 30% higher compared to other OECD countries, and that's all because the state saddles us with regulation and taxes."
In recent months, almost every major food manufacturer and importer in Israel have been announcing price increases for retailers in growing frequency, hikes that ultimately trickle down to Israeli consumers, exacerbating the pinch in the pockets of those of more modest means.
"We don't fight with anyone, we just make sure to give our customers the cheapest prices. We haven't raised any price for any product," Levy says.
Can you guarantee that you won't raise prices?
"I can tell you that I will provide the cheapest products in Israel, and I can commit to that."
And what about basic products?
"As far as basic products are concerned, we won't raise prices, on the contrary, we will introduce more deals and discounts and lower the prices even further," Levy says.
"We have been doing this throughout the year, not just in recent months. If a manufacturer wants to increase the price of a product without justification, we won't raise it on our end. And if they wish to cancel deals and discounts, we won't agree to that either."
Levy also pegged the blame for the decline in his company's gross margin on the raft of discounts it offered customers over the Jewish High Holy Day season.
"It's true that during the holidays we offered a lot of deals and discounts, and that's why our gross margin fell. We are the only ones who saw their gross margin shrink because we lowered prices. But if that's what it takes to strengthen the foundations of my business, which is the customers, then so be it."