While the government has limited bread price hikes for now, the price of bread would be going up gradually, with the next hike scheduled for after the forthcoming election
Among the many adverse consequences of the war in Ukraine is food inflation. With a global shortage of grain and skyrocketing wheat prices, coupled with the energy crisis across the world, many countries are facing inflation.
According to a report by the UK’s Money magazine, Israel is already the sixth most expensive country in the world for groceries. And on Monday, it was announced that prices are set to increase even further… with the cost of buying what many consider the bare necessity, bread, is expected to rise by up to 21 per cent.
The Bnei Brak, which is a largely ultra-orthodox community with around 180,000 residents, is also one of the poorest cities in Israel. In 2022, it was ranked Israel’s most densely populated city, with 28,000 people per square kilometre.
It is ranked the fourth most densely populated city in the world, with an average of seven children per family. The cost of feeding these large families is set to rise this summer, and again in December.
The price of white bread in the region is increasing by 5 per cent instead of the planned 36 per cent. However, come December and the price of standard bread would jump by 21 per cent.
It comes as Israel’s annual inflation rate has risen to 4.4 per cent which is the highest in the last 11 years.
The baking industry argues that the price hikes are necessary to prevent thousands of people from losing their jobs, and are not significant for consumers.
But it’s not just bread prices that are going up. The price of government-supervised eggs went up by 6.5 per cent at the start of July. For perspective, the last egg price rise was only by 1.44 per cent in 2019. And dairy products that are under government price regulation have also recently increased by 4.9 per cent.
While the government has limited bread price hikes for now, the price of bread would be going up gradually, with the next hike scheduled for after the forthcoming election. Prime Minister Lapid has asked ministers to provide a plan to tackle rising grocery bills.
In the meantime, however, it appears that many people may be left struggling to cope with food bills even more at the end of the month. And the rising cost of living and food insecurity may become key issues in the upcoming election.