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Prices Shoot Up 11 Percent, Triggering Fears of Inflation

The prices of some 200 commodities shot up between 2 percent and 11 percent Wednesday, triggering new fears of runaway inflation.

The Treasury rushed to assure the public that it was the last price hike for at least three months.

The Ministry of Industry and Trade reimposed some price controls that had been lifted.

The order affects certain kinds of bread, parking lots and barber shops, as well as coffee, tea, flour, chocolate, beer, cigarettes and salt.

Histadrut declared war on the price increases and on the Treasury’s austerity economic program approved by the Cabinet last week.

The price rises were the third since Shimon Peres took office as finance minister last month.