Israeli government to limit bread price hikes

i24NEWS

3 min read
Sliced bread at the Rami Levy supermarket in Jerusalem, Israel, on July 17, 2022.
Yonatan Sindel/Flash90Sliced bread at the Rami Levy supermarket in Jerusalem, Israel, on July 17, 2022.

Prices to be controlled until April 2023

Israel’s Prime Minister Yair Lapid and Economy Minister Orna Barbivai on Monday agreed to implement a moderate increase in bread prices as a result of a global rise in wheat prices due to the war in Ukraine. 

According to the agreement, the price of sliced bread will increase by 5.5 percent instead of 11 percent, while the price of challah bread will jump by 8 percent instead of 21 percent. The price of white bread will rise by five percent instead of 36 percent, Ynetnews reported. 

A further increase is planned for December, when the prices for sliced bread and challah will be set by the Finance Ministry’s Pricing Committee. The price of rye bread will also rise by 21 percent for a period of three months.

Israel's government agreed to lift price control measures at the end of April 2023. Lapid urged ministers to come up with a financing plan to battle rising food costs

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Barbivai in turn called on food chains to temporarily postpone price increases for regulated bread. Some of them already agreed to put a cap on prices for the next two weeks.

Last week, Israel's two main bakeries - Angel and Berman - filed a petition to the High Court of Justice against Barbivai's motion to leave the price control in place, which contradicts the recommendation of the pricing committee.

Earlier on Sunday, Lapid said the arrival of the French food chain Carrefour in Israel will have a positive effect on the climbing living costs in the country. The prime minister’s statement came shortly after the Dutch-owned global supermarket chain SPAR announced that it would open its branches in Israel. 

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