Flour, rice, frozen meat, hard cheeses, fancy breads–these are among the staple commodities whose prices will go up eight percent July 1, with the introduction of the value added tax (VAT). Nine others of the 14 subsidized staple products–including bread, milk and milk products (soft cheeses, yogurts, etc.), eggs, sugar, frozen chicken, public transportation and cooking oil–will remain the same through increased government subsidies.
This was decided yesterday jointly by the government and the Histadrut. The decision was a compromise. The government had originally sought to raise the prices of more products, while the Histadrut had initially demanded that all 14 of the subsidized staples remain stable. Other basic items that will go up by the eight percent include gasoline, heating oil, cooking gas, electricity and water. (By David Landau)
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