The government slashed the price of bread and eggs this week, agreeing to lower prices by 4-40 percent. The price cuts are expected to go into effect within the month.
Minister of Industry, Trade and Labor Eli Yishai signed an order reducing the price of subsidized bread on Tuesday. The price per loaf will drop by 4.35 percent.
Types of bread which are subsidized include common dark bread, common unsliced white bread, sliced white bread, sliced dark bread and common challah. Specialty breads are not subsidized and their prices will not be affected.
The cost of bread was slashed due to the drop in the prices of wheat and fuel. The cost of subsidized bread rose by more than seven percent between mid-2006 and late 2008 due to worldwide increases in the cost of oil and wheat. The price began to drop only in January of 2009.
Bakeries opposed the latest price cut, but their objections were overruled.
An order that is expected to lead to a significant decrease in the price of eggs currently labeled “super fresh” was signed this week by the Ministry of Agriculture.
While the price of regular eggs is subsidized, and retailers are forbidden to charge more than 12.5 shekels for 12 eggs, some retailers circumvented the rule by labeling eggs “super fresh” based on their date of delivery. The price of the “super fresh” eggs was then increased by up to 50 percent.
The ministry has ordered suppliers to deliver all eggs within 36 hours, leaving no difference between “super fresh” and regular. Stores may continue to advertise their eggs as “super fresh,” but will not be allowed to charge more than the standard price for regular eggs.
Organic eggs and other specialty eggs will not be subsidized and their price is not expected to drop.