Ukraine crisis: Bread price set to rise by up to 21% in Israel as annual inflation hits highest level in 11 years
Among the many negative consequences of the war in Ukraine is food inflation. With a global grain shortage and soaring wheat prices, coupled with the energy crisis across the world, many countries are facing inflation.
According to a report by British magazine Money, Israel is already the sixth most expensive country in the world for groceries. And on Monday it was announced that prices are set to rise further… the cost of buying what many consider the bare necessities of bread is set to increase by up to 21%.
Bnei Brak, which is a largely ultra-Orthodox community with around 180,000 residents, is also one of the poorest cities in Israel. In 2022, it was ranked the most densely populated city in Israel, with 28,000 people per square kilometer.
It is ranked as the fourth most densely populated city in the world, with an average of seven children per family. The cost of feeding these large families is expected to increase this summer and then in December.
The price of white bread in the region increases by 5% instead of the expected 36%. However, in December, the price of standard bread would increase by 21%.
This comes as Israel’s annual inflation rate rose to 4.4%, the highest in 11 years.
The bakery industry argues that the price hikes are necessary to prevent thousands of people from losing their jobs and are not meaningful to consumers.
But it’s not just bread prices that are rising. The price of government-supervised eggs rose 6.5% in early July. As a reminder, the last increase in the price of eggs was only 1.44% in 2019. And dairy products subject to government price regulations also recently increased by 4.9%.
While the government has limited bread price hikes for now, the price of bread would rise gradually, with the next hike expected after the next election. Prime Minister Lapid has asked ministers to come up with a plan to tackle rising grocery bills.
In the meantime, however, it looks like many people are finding it even harder to keep up with food bills at the end of the month. And the rising cost of living and food insecurity could become key issues in the next election.
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