The Ministry of Commerce and Industry has just approved a 60 percent increase in the price of matzos and matzo flour foreshadowing a very expensive Passover for most Israelis. A 2.5 kg. package of matzos–one week’s supply for one person–will cost IL 6.50 compared to IL 4 last year. A Ministry spokesman said, however, that there would be no shortage of matzos or of any of the other traditional Passover foods. The Ministry also announced that it would lower the prices of imported fish fillets and frozen liver.
Meanwhile, retailers have begun to reduce prices on a variety of products in face of a sharp slackening of consumer demand. Since the government’s new 7.5 percent sales tax went into effect last week there has been a significant drop in sales of furniture, clothing and shoes. Retailers of those items have decided to absorb the sales tax instead of passing it on to their customers.
But cost-consciousness among consumers has already had a dampening effect on pre-Passover sales. Housewives are seeking out the cheapest foods, leaving the more expensive items on the market shelves.
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