(photo credit: Courtesy)
The social protest and economic slowdown are affecting retailers. Food sales by supermarket chains fell a seasonally adjusted 7 percent in July 2011, compared with June, the Central Bureau of Statistics reported Monday. The Sales Value of Chain Stores Goods Index fell 2% in July from June, it said.
Trend figures show a much more optimistic picture, but they are not as good in times of a turnaround because they are based on the much better results from preceding months, so it is better to look at the seasonally adjusted figures.
The figures are in line with with the Consumer Price Index (CPI) figures
for July, which the statistics bureau published last week and which
fell 0.3%, in contrast to analysts’ forecasts of a rise of 0.3%.
The CPI showed a 2% drop in prices for dairy products in July; a 1.3%
drop in prices for meat, poultry and fish; and a 1.6% drop in prices for
fresh produce. These drops greatly contributed to the 0.6% drop in the
food item of the CPI. The CPI’s furniture and household products item
The July figures may reflect the “cottage-cheese effect,” which began
when Globes published a report on price hikes of the Israeli staple,
leading to a consumer boycott. GDP growth figures for the second quarter
indicate that the economy is slowing down and that private consumption