Minister Yishai cancels gov't decision to lift price control on bread - Haaretz

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Mon., November 26, 2007 Kislev 16, 5768

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		Employment, Trade and Industry Minister Eli Yishai. (Uriya Tadmor)

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Last update - 17:02 25/11/2007

Minister Yishai cancels gov't decision to lift price control on bread

By Haaretz Service

Tags: Eli Yishai, bread prices

Employment, Trade and Industry Minister Eli Yishai announced Sunday that he is canceling the decision to lift all state price controls on bread. The minister maintains that his decision to cancel came after he understood from bakery owners that they intended to raise the price of bread, after price controls are lifted.

The government voted two weeks ago to lift all price controls on bread, and voted to allocate NIS 60 million to disadvantaged sectors of the population as compensation. The bread, including white bread, dark bread, and challah, were to be removed from the state's price-controlled products.

However, Yishai delayed signing the order lifting price controls after he discussed the matter with bakery owners, who relayed to him that prices would be raised. Yishai intends to file a request with the government to cancel the original decision.

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Bakery owners were pleased with the original decision to lift state price controls on bread. They maintained that the controlled price did not take into account the rise in flour prices in the last year. Currently, bakery owners are believed to raise prices by more than 20 percent.

Related articles:

Cabinet votes to remove state price-control on basic bread

Analysis / Removing bread price controls: Let them eat capitalism

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1.	why not?	19:02	\|	realism	25/11/07

2.	GOOD!	19:45	\|	Avraham	25/11/07

3.	1 - REALISM	02:13	\|	Ibn Musa	26/11/07

4.	ibn musa 3	04:12	\|	realism	26/11/07

5.	Does anyone within Shas understand market forces?	04:17	\|	Raymond from DC	26/11/07

6.	4-REALISM	16:35	\|	Ibn Musa	26/11/07

7.	4-2 REALISM - PRICE CONTROLS	17:26	\|	Ibn Musa	26/11/07

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