The Industry, Trade and Labor Ministry's announced Monday that it plans to raise the prices of subsidized bread by 6.53%, citing a rise in global wheat prices.
The ministry said that subsidized bread prices have not been updated since February 2011. The new prices will take effect on Tuesday.
According to the new price chart, the price of white and dark bread will rise from NIS 4.92 to NIS 5.24 ($1.23 to $1.31); the price of sliced bread will rise from NIS 7.38 to NIS 7.87 ($1.85 to $1.97) and the price of hallah will rise from NIS 6.56 to 6.99 ($1.64 to $1.75).
According to the World Bank, wheat prices have doubled since June, following the drought in the United States, but they are still 23% lower than their record high.
The drought has also hit soy and corn crops, creating a 45% spike in corn prices and a 30% increase in soy prices.
Following the announcement, Israel's major food chains – Supersal, Mega and Rami Levi – announced they will not raise prices before Rosh Hashana.