A general upward movement in consumer prices and a spurt of bitterness among wage earners, particularly those who recently took apartments in Government housing projects on dollar-linked loans, developed today as the impact of the devaluation of the Israel pound mounted.
Workers in some of the larger factories throughout Israel promptly formed committees to formulate steps to prevent a general increase in the price level. Some even suggested a work stoppage but officials of the Histadrut, the Israel Federation of Labor, indicated opposition to any such walkouts. They promised the complaining workers that steps would be taken to boost cost-of-living allowances if that became essential.
At another economic level, that of apartment owners, who have substantial dollar-linked debts, groups of owners were organized with plans to demand that the Government be forced to cut down the difference they will have to pay because of the devaluation.
The Finance Ministry, reacting to the various pressures, was reported to be considering moves to cut this difference, now about 67 percent of the original debt, to about 10 percent. However, even if this reduction can be achieved, it will help only new immigrants and some buyers of apartments in popular housing programs.
Taxi fares have jumped 20 percent, as have rates in hotels and restaurants. Building materials have risen in price but as yet no large-scale transactions have been carried out in such materials because dealers remained uncertain as to the effect on their prices of the new customs duties announced as part of the Government’s new economic policy.
The Development Ministry rejected a demand by the Electric Corporation for a rise in rates and for a rise in natural gas rates. Furniture prices rose from 10 to 15 percent. Finance Minister Levi Eshkol and his aides mapped a heavy public campaign to explain the new economic policy and the various price changes, scheduling public meetings in Tel Aviv and Jerusalem for next weekend.
The Archive of the Jewish Telegraphic Agency includes articles published from 1923 to 2008. Archive stories reflect the journalistic standards and practices of the time they were published.
