Subsidized bread
Photo: Shaul Golan
Price of subsidized bread to be reduced by 5%-10%
Industry, Trade and Labor Ministry slated to announce decision on matter later this week following drop in global wheat, fuel prices
The Industry, Trade and Labor Ministry is expected to reduce the price of subsidized bread in the coming days. The prices are expected to decrease by 5% to 10% following the drop in the global prices of wheat and fuel.
The ministry's economists are currently making their calculations and are expected to announce their decision on the matter later this week.
Should the ministry's supervisor of prices, Zvia Dori, decide to sign an injunction ordering a price cut, this would compel all bakery owners who object to the reduction.
The bread prices were last increased in April, by approximately 4%. The confectioners' union decided on a unilateral price-hike without receiving the ministry's approval, after appealing to the supervisor of prices in March and asking her to approve the raise.
The ministry did not respond to the union's appeal, and the confectioners decided to raise their prices. This was a legal move, as the Price Supervision Law allows bakery owners to raise prices unilaterally if supervisor of prices failed to respond to their appeal within 30 days.
Subsidized bread currently costs NIS 4.75 (about $1.24), while sliced subsidized bread costs NIS 7.15 ($1.87).
