Drought in Russia Raises Local Bread Price

Effective today, buying price-controlled bread will cost a bit more dough, 3.55% more, to be exact. The official in charge of price supervision at the Industry, Trade and Labor Ministry, Tzvia Dori, said the move was the result of a sharp rise in the world price of wheat.

The heat wave and drought that have hit major wheat producing countries, most notably Russia, has caused about a 30% increase in wheat prices on world exchanges, to the highest levels in about two years. This in turn has caused the price of flour, a main component in the cost of bread, to go up.

As a result, the price for standard light and dark bread will rise from NIS 4.44 to NIS 4.60 a loaf today. Standard challah will also go up, from NIS 6.66 to NIS 6.90.

Sliced white bread under price supervision will cost NIS 6.13 instead of NIS 5.92. Last year price-controlled bread went down in price three times and up once.

Even with the new price increase, a loaf is still 3.5% cheaper than in April of 2008.