Israel’s cost of living index rose by 26.4 percent in 1973, the highest rise in 21 years and the upward spiral is continuing, according to figures released by the Central Bureau of Statistics. The figures indicated a rise of 14.8 percent since last July when the last cost-of-living payments were made. This has led Histadrut to demand substantially higher COL allowances. The government seems prepared to accept the demand but the employers are balking.
According to the 1973 figures, the cost of housing led the inflationary trend with a 42 percent hike. Next on the list was furniture (30%); food (28%); home maintenance (24%); education ,(20%); clothing (19%); health services (18%); and transportation and mail (17%). Histadrut is asking COL increases that would range from IL 58 for a person earning IL 700 a month to IL104 for a person earning IL260 or more per month.
Histadrut Secretary General Yeruham Meshel said on a radio interview yesterday that he hoped the manufacturers would take into consideration the real value of the wages they pay and cooperate to avert labor unrest at a time of national emergency. But Marc Moscewitz, president of the Israel Manufacturers Association, said his group would oppose the Histadrut demands.
It is clear to most observers that prices will continue to soar in 1974. The first indication was the increases in the prices of oil and gasoline that went into effect at midnight Sunday. Gasoline for motorists was up by 49 percent and heating oil 40 percent. Cooking gas increased in price by 50 percent and industrial fuel by 90 percent. Heavy fuel oil used in the cement and electric industries has gone up nearly 100 percent in price.
Government officials said they expected increases in the cost of electricity and related items in the wake of the oil price rises. They blamed the increased cost of oil on the worldwide price spiral for crude oil and in part on the fire that has severely cut production of the Abu Rodeis oil fields in Sinai which had been producing all of the oil consumed domestically.
The Ministerial Committee on electricity tariffs decided on a 37 percent price increase for householders. The rise must be approved by the Knesset Finance Committee. But despite overall price increases, Israeli clothing stores are going ahead with their annual end of season sales which will start next Monday. Bargains of up to 25 percent of the regular price will be offered.
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.
