Consumers face further price increases as inflation threatens to spiral beyond the Bank of Israel's target range of 1-3 percent. Poultry farmers have asked the Agriculture Ministry for permission to raise the price of eggs by five percent. The cost of eggs already has risen twice this year.
The cost of chickens also has risen and may rise further following increased costs of production, primarily because of higher energy prices, which affect transportation and production.
Inflation in October was slightly above zero, and a similar rate is expected in December, but financial analysts have warned that the figures are an illusion. They explained that the zero rate is due solely to the strength of the shekel against the dollar, which has reduced costs of property and rents quoted in dollars. Once the dollar's value stops dropping, inflation will begin to move up sharply, they added.