The price of gasoline and cooking oil dropped by four percent at midnight last night — the first decline in fuel prices in 34 years, since 1951. The government decision to decrease fuel prices followed a lowering of crude oil on the world markets.
A similar four percent decline last month in the price of fuel oil, used in the production of electricity, led to a decrease in power prices, and last night’s reduction will lead to a drop in the price of water and other items using large amounts of fuel in their production.
The decreases in fuel and related goods will keep September’s cost of living index increase down by about 0.5 percent.
Department store prices for clothing and footwear will decline by an average of 20 percent in October, following an agreement just reached between the Ministry of Commerce and Industry and the larger department stores.
Government spokesmen regard the price declines as indicating the success of the economic package deal stabilizing prices and halting the inflationary spiral.
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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.
