Economic concerns cloud Passover celebrations as cost of living crisis deepens in Israel

Survey reveals Israelis cutting food budgets as household expenses jump NIS 1,644 monthly. Despite personal struggles, 42% still plan to donate holiday meals to those in need.

 People beg on the streets of Jerusalem. (photo credit: MARC ISRAEL SELLEM/THE JERUSALEM POST)
People beg on the streets of Jerusalem.
(photo credit: MARC ISRAEL SELLEM/THE JERUSALEM POST)

As Israelis prepare to celebrate Passover, a new survey released by the Latet Organization reveals a troubling economic landscape. According to the findings, nearly 60% of Israelis fear they or their family members may fall into economic hardship or already find themselves struggling financially.

The survey, conducted in late March, paints a stark picture of growing financial anxiety amid rising prices and ongoing economic challenges following the war. Monthly household expenses have increased by an average of NIS 1,644 since the beginning of the year - translating to an annual increase of approximately NIS 19,728 for Israeli families.

This financial pressure is forcing many to make difficult choices. Nearly half of respondents (49.9%) report reducing their food expenses, while 40.3% are cutting back on other essential costs. Both figures show significant increases compared to Passover 2024, when these percentages stood at 34.5% and 27.7%, respectively.

The holiday itself presents additional financial strain, with about one-third (32.9%) of respondents reporting they lack sufficient means to properly prepare for Passover. Additionally, 40.1% say they will need to forego expensive products when shopping for the holiday due to financial considerations.

Despite these challenges, the survey highlights a remarkable spirit of solidarity among Israelis. Over 41% of respondents have donated or plan to donate a holiday meal to those in need. Among those not donating, nearly two-thirds (63.6%) indicated they would like to help but cannot afford to do so.

 Choosing between bread and milk: 47% of Jerusalemites live below the poverty line (Illustrative). (credit: FLASH90)
Choosing between bread and milk: 47% of Jerusalemites live below the poverty line (Illustrative). (credit: FLASH90)

"Since the war and now approaching Passover, we are witnessing an inspiring phenomenon of social solidarity and mutual responsibility in Israeli society," Gilles Darmon, president and founder of Latet Organization, said. "A significant portion of Israelis have donated or intend to volunteer or donate a holiday meal to those in need, despite the challenging economic situation."

However, public confidence in government solutions appears low. Nearly 76% of Israelis believe the government is failing to manage national budget priorities in a way that reflects distributive justice. Only 11% express full trust in the government's ability to address the high cost of living, resulting in an average trust score of just 1.9 out of 5.

Consequences of the war

Eran Weintrob, CEO of Latet Organization, points to multiple factors contributing to the crisis: "The consequences of the war, rising food and consumer product prices, combined with economic measures - primarily the market interest rate, VAT increase, freezing of allowances, and raising National Insurance fees, rising property taxes, electricity, water, and public transportation costs - will make the coming years very challenging economically."

The impact is already evident, with nearly 40% of respondents reporting that their economic situation has worsened compared to last year. The primary reason cited is the high cost of living (87.4%), followed by decreased income from work (27.6%) and unexpected expenses (19.6%). Other factors include health issues (13.1%), debt accumulation (12.6%), and family status changes (8.5%).

Looking forward, only one in four Israelis expresses optimism about the country's future. Weintrob emphasizes that meaningful change will require significant policy shifts: "Only government policy that implements a concept of distributive justice in the state budget will help build the resilience of Israeli society and allow hundreds of thousands of families to realize their basic right to live with dignity."


Stay updated with the latest news!

Subscribe to The Jerusalem Post Newsletter


The survey was conducted by IPANEL for the Latet Organization from March 21 to 26, 2025, among 501 respondents aged 18 and over, constituting a representative sample of the Jewish population in Israel.