The Cabinet approval Sunday of the proposal of Industry, Trade and Labor Minister Eli Yishai (Shas) to remove bread from price controls in return for compensation was an "historic" decision, he said Monday morning. The Shas minister explained that instead of subsidizing a product for all citizens, the government now can give compensation to the weaker sectors of society, whose expenditures are more affected by increase in basic staples.

Bakeries previously have stopped making basic products after the government refused to increase the price ceiling. The rise in prices has been mainly due to the spiraling price of oil.