Kahlon used to be a Knesset member in the Likud party (Netanyahu's party). He quit Likud to start a new party, Kulanu ("all of us"). He ran on a centrist platform, concentrating on domestic economic issues (chiefly, that the cost of living is going up too fast). The word is that he will join a coalition with whoever will make him the Finance Minister.
Got to give the Israel system some cred. A guy can break away like Sharon did in the past and this guy create a legitimate new party.
What can a gov't do? Is the Israeli Central Bank not trying to keep inflation under control? The #2 at the Fed Stanley Fischer was head of Israel's Central Bank.