Ministry of Agriculture officials announced a wave of price increases are necessary in light of the extreme weather conditions that have resulted in the destruction of many crops in the United States. This has launched a ripple effect, increasing the prices of flour, corn and many other staples which eventually leads to price increases here in Israel.
Subsidized bread will cost an additional 6.5%, milk 13%, eggs 17%, poultry 14%, vegetables 12%, gasoline 6%, cigarettes 10-15%, and value added tax 1%.
The increased prices are expected to continue through the end of 2012.
(YWN – Israel Desk, Jerusalem)