After the Finance Ministry intervened to spread a planned 16% increase over three years, the price of dairy products in Israel, subject to government regulation, will increase by 9.28% this week.
Finance Minister Bezalel Smotrich stepped in to stop the Monday gasoline price increase.
According to studies, the Israeli public’s primary concern is the rising expense of living, which is why the changes are being made now.
Essential milk and cheese products will cost more because of the last-minute deal negotiated by Smotrich, resulting in price rises of 9.28% and 3.1% from May through 2026.
For the delayed price increases, dairy companies will be compensated.
Smotrich praised the deal and cited the previous administration’s “irresponsible conduct” as the cause of the price increase.
“A comprehensive overhaul of the dairy business is currently underway. I’ve requested the Finance Ministry’s experts to look into the entire production process, the minister said in a statement on Monday.
All of this, he continued, is done to liberate the economy from excessive centralization and outmoded planning and move it toward a free and open market.