Finance Minister Moshe Kahlon has reportedly reached an understanding with the Public Utilities Authority, according to which a significant portion of the increases scheduled to take effect in 2019 will be offset – cutting the projected 6% to 8% increases by 3%. A final decision will be issued by the Authority in the coming days, after the effects of the measures are studied, Israel Hayom reported Thursday.
In addition, the Manufacturers’ Association on Thursday submitted a letter of commitment to Kahlon stating that all food companies are canceling their plan to raise food prices – raising the question if there’s such a thing as racketeering…
Minister Kahlon issued a statement saying: “As I promised in recent days, I am pleased to announce today that the current wave of price hikes has been stopped, and that the Israeli Finance Ministry will continue to act to reduce the cost of living in every field, as we have done over the past four years, to the benefit of the citizens of the State of Israel.”
Those citizens are expected to go to the polls some time next year, and so far, Kahlon’s Kulanu party is scratching the four-seat threshold in most public opinion surveys.
The rage over the announced price increases was recently expressed in protest against the big grocery chains, as “yellow vest” protesters stickered products with messagwes in Hebrew and Arabic, saying “We will not pay for them to get rich.” The stickers were pasted on selected products from Osem, Tnuva, Tara and Coca-Cola in protest of their announced price increases.
Back in 2011, a particular Tnuva product, cottage cheese, was singled out and reviled by social protesters as being unreasonably costly. The company backed down in response.
“We are struggling so that people in Israel can go out to work every day and at the end of the month will be able to live with dignity,” Rula Daoud, a leader of the Omdim B’Yahad (standing together) movement, said in a statement.