The Israeli government is beginning to feel pressure from he public due to a wave of price hikes set to go into effect on Tuesday.
According to Channel 12 News, the coalition parties are attempting to put together a "package plan" which will be presented to the public and soften the blow of the near-simultaneous price hikes.
Meanwhile, the Israel Electric Corporation earlier this week announced a 5.7% price hike, set to take effect Tuesday, and gas prices are expected to rise by more than 5% as well. In addition, some food companies have announced that they will raise prices by up to 15%.
It is expected that the rise in the cost of electricity and gas will themselves trigger an increase in the costs of additional products, due to the fact that both of those commodities are necessary for the production of most items. The higher gas prices are expected to raise the costs of shipping and public transportation.
Finance Minister Avigdor Liberman (Yisrael Beytenu) and Economy Minister Orna Barbivay (Yesh Atid) gave importers and large manufacturers an ultimatum, demanding that they announce that they will stop raising prices. So far, only the Strauss Group has listened to their request. While the government does have the capacity to take action against companies which raise prices, it is estimated that it will take many months before the government is able to act.
The current government campaigned on promises to "reduce the cost of living," but since taking office, the government has raised taxes on sweet drinks and disposables, and the prices of electricity, water, and gas have all risen as well.