Ministers to Food Companies: Don’t Raise Prices

The Israeli finance and economy ministers have written to major food producers and importers imploring them to cancel plans for price increases, according to media reports on Sunday.

Finance Minister Avigdor Liberman and Economy Minister Orna Barbivay wrote that this is not the time to seek more profits.

“The crisis has yet to end, and neither citizens nor businesses have entirely recovered – some are still being negatively impacted by the current Omicron wave of the virus. The Israeli government is doing everything it can to help them survive this wave, but we need the cooperation of the other players in the game too.”

The ministers also noted that until 2021, the shekel strengthened significantly against foreign currencies while inflation remained low, meaning that imported food items were cheaper for the companies to purchase, savings that were not passed on to consumers in Israel, where prices were and remain the highest in the world.

Liberman indicated that there might be a price to pay if the companies go ahead with their plans.

“We will not hesitate to take the necessary steps to ensure a competitive and fair economy,” said Finance Minister Avigdor Liberman. “I expect companies at this time to reconsider and avoid cynical price increases that will harm the citizens of the country.”

Opposition MK Ya’akov Asher (UTJ) accused Lieberman of being the one to act cynically:

“The person responsible for empowering food and consumer companies is first and foremost Finance Minister Lieberman. The draconian tax imposed on Israeli citizens in times of crisis, in the most cynical way possible, fueled price increases and gave the feeling that the stores could get away with anything. This is indescribable hypocrisy,” he said, according to Arutz Sheva.

In recent weeks a number of food companies have announced higher price hikes, including Osem, and the importer Diplomat, which merchandises Starkist tuna, Pringles, and Heinz ketchup, among others.

The consumer price index rose by 0.3 percent in December, notably for clothing and footwear (1.1 percent), housing (0.8 percent), furniture and household goods (0.7 percent), and food (0.5 percent). Fresh fruit and vegetables, by contrast, saw their prices drop (2.7 percent), and cultural events became 0.8 percent cheaper.