Will bread prices rise? This is the dramatic recommendation issued by the Price Committee

July 22, 2021   

The joint inter-ministerial price committee of the Ministry of Finance and the Ministry of Economy and Industry, on the subject of bread price control, published its recommendations today (Thursday), according to which bread price control in the country should be abolished. Without conditions and with scholarships: earn an average of 35,700 shekels per month Here you will receive clear information: Have you returned from abroad? Have you been near a sick person? Do you want to travel? This position is also supported by the Competition Authority, which advised the Price Committee in the process. According to the committee's recommendation, there is competition in the supervised bread market among the leading bakeries in the market, and therefore there is no justification for setting a supervised price in the market. Instead of setting a supervised price, the committee recommends moving to supervision using a model of ongoing monitoring of the market situation - reporting from manufacturers on the level of profitability and prices. This position is based on the justifications existing in the law for the existence of supervision, and on the shortcomings of a price supervision mechanism, which may lead in the medium-long term to price increases, to the exclusion of competitors from the market, to the erosion of the quality of the products sold, and hence also to harm the consumer public. At this stage, the committee is holding a public hearing on the recommendations and allowing the public to submit comments. After receiving and analyzing the comments, the committee will publish a final recommendation to the Minister of Finance, Avigdor Lieberman, and the Minister of Economy and Industry, Orna Barbievi. After reviewing the public's comments, the ministers will be required to make a decision on the matter in accordance with the law, while paying attention to the impact of the measure on the cost of living and on Israeli consumers. As of today, the breads for which there is a controlled price are: a loaf of wholemeal bread, sliced ​​wholemeal bread, a loaf of white bread, sliced ​​white bread, rectangular challah (bare). According to the committee's data, the volume of consumption of controlled breads has decreased by tens of percent in recent years, even among households in the bottom quintile, and at the same time there has been an increase in the consumption of specialty breads and rolls. According to the committee's data, the main bread product consumed by households in the bottom quintile is pita bread, which is not controlled.