Israelis Protest Over High Cost Of Living

More than 250,000 people have joined protests in Israel demanding government action to address the soaring cost of living.

The biggest demonstration was in Tel Aviv, where the city came to a standstill at the end of the Jewish sabbath when 200,000 took to the streets to call for cheaper housing and basic goods.

There were also protests in Jerusalem and other towns and cities across the country.

The mass protests are some of the biggest in the history of the Jewish state, where there is growing anger among the middle classes that life is becoming unaffordable.

"There has been nothing like this for decades," said Baroch Oren, a protest leader. "It's a revolution."

Prime Minister Benjamin Netanyahu, under pressure to change economic policies, has promised to establish a special ministerial committee to address the issue.

The demonstrations began three weeks ago when a group of protesters pitched tents in the centre of Tel Aviv to protest against the high cost of housing.

Since then the protests have escalated, with the demands for economic change eclipsing the stalled peace process on the political agenda.

Israel's economy has continued to grow at around 4% a year, despite the global recession.

But many in the middle classes believe they are not feeling the benefits, with high taxes and soaring costs for food and basic goods.

The government has promised to free-up state-owned land to build more low-cost housing, but protesters are demanding a complete re-think of the country's free market policies.

"We demand social justice", read one of the banners carried by marchers in Tel Aviv.