Israelis were jolted by a new wave of price hikes that took effect a midnight last night. The prices of meat, poultry and cigarettes rose by 10-20 percent raising the cost-of-living index by one percentage point. The latest increases, added to the earlier 20 percent rise in the price of fuel, will bring the c.o.l. index up by at least 3.5 percent in November.
The public reaction was predictable. Consumers swiftly emptied supermarket shelves buying quantities of every available item to hoard against expected future price increases. The increases were due partly to cuts in government subsidies for many food items and commodities, and, in the case of cigarettes, to a higher excise tax. Government policy is to reduce subsidies gradually.
The result will be higher costs for public transportation, oil, bread, milk and eggs. Some of those products were subsidized at a rate of up to 90 percent under an agreement between the government and Histadrut. The agreement expired yesterday.
A sampling of prices in effect today showed a gallon of low octane gasoline selling for $2.00; one pound of frozen chicken, 65 cents; one pound of frozen meat, $1.30; average standard brand Israel-made cigarettes, 50 cents a pack and American brands as high as $1.00. The average salary in Israel is $300 a month.
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.
