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Consumer prices to increase in Israel, but not as much as previously anticipated

In response to a public outcry, the cost of electricity will not be raised by 8 percent, but is estimated to rise instead by 3 percent.

Rothschild Boulevard in Tel Aviv. Photo by Miriam Alster/Flash90.
Rothschild Boulevard in Tel Aviv. Photo by Miriam Alster/Flash90.

In response to a public outcry over coordinated price hikes across a series of living costs, Israeli Prime Minister Benjamin Netanyahu said on Wednesday that electricity prices in the new year will be raised less than the 8 percent, which had been previously announced.

“I do not know how much it will rise, but a few percent in the worst case,” said Netanyahu at a business conference.

Also on Wednesday, Israel’s third-largest food producer, Osem, said it will postpone a 4.5 percent price hike in response to public pressure and a request from Finance Minister Moshe Kahlon.

Additional hikes in the consumer price index are expected to be a 4.5 percent increase in water prices, a 3.4 percent rise in the price of dairy products, a 7 percent rise in car insurance, 10 percent higher prices on toilet paper, and a 10 percent to 15 percent hike in phone plan costs.

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