The government will lower price-controlled bread prices due to the drop in wheat and energy prices on international markets.
Minister of Industry, Trade and Labor Naftali Bennett today signed a directive lowering the price of price-controlled bread by 4.17%. The reduction is due to the drop in the price of wheat and energy in international markets. The directive will come into effect in a few days, after arrangements with the Ministry of Finance and bakeries are completed.
This is the first time since 2009 that the price of price-controlled bread has been reduced.
Bennett's aides told "Globes" that there were doubts about the effectiveness of the mechanism for setting the price of price-controlled bread. Prices in areas with competition between bakeries and retailers are sometimes lower than prices in areas without competition. "Sometimes, the retail price of bread in Tel Aviv is lower than in Yeruham. This raises the question whether the current mechanism is effective, since the purpose of price controls is to protect the poor," said a source at the Industry Ministry.
Published by Globes [online], Israel business news - www.globes-online.com - on April 9, 2013
© Copyright of Globes Publisher Itonut (1983) Ltd. 2013