Israeli bakeries that produce price-controlled bread are planning to apply to the Economy Ministry for a price increase due to a rise in flour costs.
What happened
Flour mills in Israel have announced a 10% to 15% price hike, citing the Russia-Ukraine war as the main reason. The conflict has damaged wheat supplies to Israel, forcing mills to seek alternative suppliers in Poland and other Western European countries at a higher cost.
The price increase is expected to affect not only price-controlled bread but also other baked goods, such as cakes, cookies, and non-controlled bread. Local wheat production is also contributing to higher costs, with prices set according to the price of American wheat, which is considered expensive.
The bakeries will have to absorb the increased costs until the Economy Ministry approves a price hike for price-controlled bread. The exact price increase for consumers is still unclear, as flour is only one component of production costs.
The rise in flour costs may also affect consumers who prefer to buy flour and bake themselves, as the price increase is expected to reach bags of flour sold in supermarkets.
