Government agrees to limit rise in bread prices, with controls to end by April 2023
Prime Minister Yair Lapid and Economy Minister Orna Barbivai agreed on Monday to limit planned price hikes for bread and implement a controlled gradual increase instead.
According to the agreement, the price of sandwich bread will increase by 5.5% instead of 11%, the price of challah bread will increase by 8% instead of 21%, and the price of white bread will increase by 5% instead of by 36%.
The Finance Ministry’s price committee is expected to introduce further price hikes for sandwich bread and challah in December, while the price of white bread is expected to increase by 21% over a three-month period.
Ministers also agreed to remove price controls by April 2023. Lapid asked ministers to provide an appropriate funding plan to tackle rising food prices.
The price committee noted that the main reason for the increase in bread prices is the skyrocketing wheat prices in the international market following the war in Ukraine.
Economy Minister Barbivai appealed to food chains in a request to temporarily postpone price increases for regulated bread, with some agreeing to cap prices for the next two weeks despite the price committee’s decision.
Meanwhile, Israel’s two largest bakeries, Angel and Berman, petitioned the High Court of Justice last week against Barbivai’s intention to leave price controls in place, contrary to the committee’s recommendation. price.