Finance Ministry says companies have agreed to curb price hikes

Ministry says electric corporation and major food companies will freeze or limit planned price jumps, after public protests

Finance Minister Moshe Kahlon speaks during a conference in Jerusalem on May 7, 2018 (Yonatan Sindel/Flash90)
Finance Minister Moshe Kahlon speaks during a conference in Jerusalem on May 7, 2018 (Yonatan Sindel/Flash90)

The Finance Ministry said Wednesday it had taken steps to curb an expected wave of price hikes across Israeli markets, after meetings with the Israel Electric Corporation and major food companies Osem and Strauss.

In recent days Israelis across the country have protested planned price rises for electricity, water, gas, and cellphone bills, as well as food, drink, insurance, and property taxes.

On Friday, hundreds of Israelis wearing yellow work vests converged on Tel Aviv to protest the increasing prices, similar to the economic-driven protests rocking France in recent weeks.

A major reason for the hikes was the expected rise in electricity prices. But the Finance Ministry on Wednesday said the IEC had said it would scale back the price increase after the ministry agreed to freeze a planned tax raise on fuel.

According to the Ynet news site electricity prices will rise by 5-6 percent, instead of a planned 8%.

Israeli yellow vest protesters march in Tel Aviv on December 14, 2018. (Gili Yaari/FLASH90)

Meanwhile the ministry said food giants Osem and Strauss had both agreed to freeze price jumps on many of their products. The ministry also said it would not go forward with a planned price raise on subsidized dairy products.

The ministry also said that the Manufacturers Association of Israel had said its member companies would refrain from raising product prices, though Ynet noted that many companies have already raised prices.

On Sunday the ministry said it had reached an agreement with major bakeries that would avoid price rises for all but two price-controlled breads.

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