Subsidized bread prices are expected to add 3.62% after the High Holidays, due to soaring wheat prices.
Zvia Dori, Head of Finance Administration Industry, Trade and Labor Ministry approved the raise, despite the fact that bread prices increased by
3.55% a mere month ago.
Industry, Trade and Labor Minister Binyamin Ben-Eliezer has deferred the hike until after the holidays, in order to refrain for "stressing the public's budget" at a time of greater expenses.
Once the prices are adjusted, a loaf of subsidized bread will cost NIS 4.76 ($1.26), a challah will cost NIS 5.2 ($1.38) and sliced white bread will cost NIS 6.35 ($1.68).
Dori stressed that subsidized bread prices were cut three times in 2009, but bread prices have doubled over the past decades nonetheless.
The bigger bakeries welcomed the decision, but lamented the deferral, saying it will cost them hundreds of thousands of shekels.
Wheat prices noted a new record Monday. Bad weather, which all but destroyed entire crops in Russia, the European Union and Canada, caused wheat prices to soar 74% over recent months.
Daniel Bettini contributed to this report
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