The Jerusalem Post is reporting that on Sunday, the government is expected to vote on to compensate lower income population groups for an increase in bread prices. If the proposal is approved, Minister Eli Yishai (Shas) will permit bakeries to raise the price of subsidized bread by 12%. Earlier this month, Israel’s bakeries stopped supplying grocery stores and supermarkets with subsidized bread – as reported HERE on YW.
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3 Responses
No business with sechel will continue to produce a money-losing product. (Economics 101)
The only one who gained from this whole thing was the bakeries. The sold non-subsidized while bread instead for 7.99 NIS a loaf (instaed of ~4 NIS).
People had no choice but to buy.
This 2 week period earned them more money than they would have earned from raising the price (which is going to happen in any event!).
Once again, wheat prices has increased through-out the world, who shall pay for the increase?