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)
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One Response
The markets are world wide, and several countries are having a bad year. Also the high price of gas raises production costs, and causes farms in several countries to divert food to ethanol production.