The government announced tonight substantial increases in the prices of 14 basic commodities, foodstuffs, fuel and energy and public transportation. At the same time, the Pounds underwent another devaluation and now stands at IL 7.52 to $1. The price hikes are a direct result of cutbacks in government subsidies that were decreed for economy reasons. A 25 percent ceiling was placed on price increases at the insistence of Histadrut. Economists estimate that the new prices will increase the consumer price index by 4-5 percent. Beginning tomorrow, Israelis will be paying: 14.7 percent more for gasoline; 25 percent more for bread 20-25 percent more for milk and choose; and 20 percent more for frozen meat and poultry. Electric bills will go up 5 percent and public transportation by 25 percent.
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