The cost of chicken has soared to approximately 20 shekels a kilo ($5.70 a kilo), approximately double the price of several months ago. The increase is only one of dozens of price hikes that threaten to wreck government plans to contain inflation.
The Bank of Israel Monday night decided to leave the interest unchanged at the historic low of 3.25 percent. Lowering the rate contributes to inflation, which economists fear will rise more one percent in April and May if world crude oil prices remain at their current highs of almost $120 a barrel. Motorists face a sharp increase in fuel at the pump as of Thursday morning, after the government adjusts the monthly price ceiling.