Israelis were hit by a nearly 30 percent hike in the price of bread Monday night as the Finance Ministry moved to abolish or reduce government subsidies that have kept the costs of basic foods and services relatively low.
The Treasury acted after the Cabinet voted to cut some $250 million from the national budget.
Eggs, milk, dairy products and poultry — all basics for the average Israeli family — will also go up in price as of midnight.
But the steepest rise was for bread. The subsidies that had kept white and dark loaves relatively cheap have been abolished altogether.
The Finance Ministry said public transportation fares would also go up, causing a 1 percent rise in the consumer price index.
The trade union federation demanded that full cost-of-living allowances be paid with next month’s salaries. But according to Histadrut’s agreement with the government, the increments are not due until October.
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.
