Is the cost of living increase in Israel temporary or long-term?

Economists and economic reporters are divided on whether the present increase in cost of living is a temporary bubble that will pop or something more enduring, according to Calcalist.

Israel is dealing with a series of fixed price increases due to rising taxes and living expenses including increased water and electricity costs, as well as a mandated increase in municipal property tax and VAT to help pay for ballooning defense spending to deal with the war.

On the other hand, economists believe that what appears to be the winding down of the war, with its attendant allowing of more business and economic activity, and an expected decrease in inflation from over three to over two percent in a year, means that Israel's costs will calm down.

However, increases in wages as well as people purchasing more and more with the hope inflation will go down could lead to more pressure on prices lasting over a longer period of time.