As Israel continues its military operations in Gaza and encounters rising tensions on its northern borders, warnings are growing that economic pressures may not abate with a decrease in combat. Instead, experts fear that the nation could enter a phase characterized by 'post-war inflation.' Although recent price indicators show a return to more moderate levels, worries remain about the effects of continued military spending and the expanding financial deficit in the medium term.

Professor Ephraim Ben Melech, who has conducted extensive research on the impact of wars on economies, expresses skepticism about the prospects for a swift recovery of the Israeli economy following the conclusion of military action. He notes that while historically, security expenditures would decline post-crisis, the current reality reflects a continuous rise in security funding. This ongoing commitment to high military spending could constrain the economy's ability to regain momentum quickly, contrasting sharply with previous crises where recoveries occurred relatively fast.

Ben Melech's analysis points to a fundamental difference in the current environment compared to past crises, emphasizing that the lasting implications of persistent high spending on security could limit economic recovery. The discussion surrounding these economic challenges underscores the interconnectedness of military conflict and financial stability, suggesting that the repercussions of the ongoing war may linger long beyond the battlefield, potentially reshaping the trajectory of Israel's economy for years to come.