Illustration
Photo: Shaul Golan
Bakeries to demand another raise in bread prices
Wheat crops around the world suffer harsh elements, grain prices spike reaching 10-year high. Bakeries warn increase in bread prices inevitable
Major bakeries in Israel announced Monday that another increase in bread prices may be inevitable, Yedioth Ahronoth revealed Monday.
According to the report, rising wheat prices have set a new record over the weekend. Heavy rain in the US' Midwest and unfavorable weather in Canada and Europe has severely damaged the crops, creating a demand the current supply might not be able to meet.
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Market analysts warn that given this year's crop losses the global wheat reserve may reach a low point not seen in 26 years.
Faced with these supply difficulties, wheat prices in the Chicago Mercantile Exchange spiked to $7.44 a bushel (about 8 gallons), reaching their highest point in 10 years.
According to the controlled prices regulation customary in Israel, bread prices must be updated whenever a 3% increase in world wheat prices is evident.
Since this is the case now, the major bakeries announced Monday that another raise in bread prices may be inevitable.
