P.M Lapid and Economy Minister Barbivai agreed on a more moderate increase in the Bread price

Prime Minister Yair Lapid and Economy Minister Orna Barbibai announced on Monday evening that they had agreed on a more moderate and gradual increase in the price of bread. The price of the uniform sliced ​​bread will increase by 5.5% instead of 11% as previously planned. The price of challah will increase by 8% instead of 21% and the price of flat bread will increase by 5% instead of 36%.
Another increase in price will take place in the month of December, when the price of the uniform sliced ​​bread and the price of challah will increase as determined by the price committee, while the price of the uniform bread will complete an increase of 21% in total (instead of 36%), and this for three months.
In addition, the Prime Minister and the Minister of Economy announced that the removal of all types of bread from full supervision will come into effect in April 2023.
Attorney Yaron Kostlitz, who represents the Angel and Berman bakeries and submitted the petition to the High Court in Sheman, stated that "the bakeries welcome the fact that their position has been accepted, according to which there is no justification for allowing bread products to be subject to price controls, in a competitive market. The bakeries complied with the Prime Minister's request to moderate the The immigrant who came to the bakeries according to the law, out of a desire to enlist at this time of the rising cost of living."
Ten days ago, the joint price committee of the Ministry of Economy and Finance announced a price increase of no less than 36% for the breads that are under supervision, this after Barbiei announced the day before that the prices of the supervised bread are expected to rise by about 20%.
According to the Price Committee's announcement, the price increase results from an update of the input basket and is mainly affected by a cumulative increase in flour prices.
Immediately after the committee's decision, Lapid announced that he was working to stop the increase in bread prices, and contacted the legal advisor for an urgent discussion of all the parties involved. At the discussion held on Sunday, four proposals were put forward: to give financial support from the government to bakeries and retailers, to lower the VAT through temporary legislation, to lower bread prices under supervision, to be in negotiations with the bakeries for a long period of time, and to check the percentage of government institutions buying bread, and to see If it is possible to subsidize the purchase of bread in quantities. The Treasury opposed the proposals, and that discussion ended without any new news.
Following Prime Minister Yair Lapid's directive to find a solution to the rise in the prices of controlled bread, the Minister of Economy, Orna Barbibai, appealed to the food chains to temporarily delay the increase in the prices of controlled bread. Rami Levy, Shufersal, Victory, Beitan Wines, Yohannoff, Market Warehouses and Half Free agreed to suspend the increase in the prices of supervised bread for the next two weeks despite the decision of the price committee in the Treasury for an update that is expected starting next Sunday.
Against the background of price increases, the two largest bakeries in Israel, Angel and Berman, petitioned the High Court last week against the Minister of Economy's intention to leave the supervision of the supervised bread products, contrary to the recommendation of the Price Committee.
As I recall, the committee that supervises the prices of uniform bread, white bread and challah, recommended about two months ago that they be removed from state supervision and that producers report on prices and profitability. Even then it was known that even if the Ministers of Economy and Finance did not accept the decision, bread prices would rise by up to 28% according to the March calculation, since the index has risen since then.
Recently, the Berman and Angel bakeries informed the chains that the prices of the types of special bread that are not under supervision will increase. Last week Berman sent a price list according to which from July 12 the prices will increase, and Angel, which controls the market, has already increased the weight of a supervised uniform bread from 750 grams to 900 grams. Although the price per 100 grams is in accordance with the supervision, consumers are forced to pay more per square. The private brand and competitors Barman and Deganit Ein Bar still sell the "regular" size.