Subsidized bread
Photo: Shaul Golan
Price of subsidized bread to drop by 3%
Industry, Trade and Labor Ministry economists reconsider last week's decision to reduce bread costs by 7.4% in order to equalize losses suffered by bakeries in past year
The Industry, Trade and Labor Ministry is expected to announce in the coming days a 3% reduction in the price of subsidized bread.
Last week, the ministry's economists carried out their calculations and reached the conclusion that the price of bread should be reduced by 7.4%.
However, after examining losses suffered by bakeries in the last year, the inter-ministry pricing committee headed by the Finance Ministry, approved the decision to lower the reduction rate in order to compensate bakeries.
The updated bread prices will only go into effect once Finance Minister Ronnie Bar-On and Industry, Trade and Labor Minister Eli Yishai sign a reduction injunction.
The Industry, trade and Labor Ministry released a statement in the matter, saying, "After the losses are equalized the prices will still go down a certain rate. The procedure is undergoing a final clarification with the approval of the government office at the Industry, Trade and Labor Ministry."
The decision to lower the cost of subsidized bread came following a global reduction in wheat and fuel prices.
The bread prices were last increased in April, by approximately 4%.
