JERUSALEM, Aug. 13 (Xinhua) -- The Israeli Ministry of Industry, Trade and Labor on Monday announced that the price of bread will rise at midnight to reflect the rising costs of ingredients.
The costs of price-controlled bread is set to go up by 6.53 percent, reaching upwards of 2 U.S. dollars per loaf, according to a ministry statement.
"The price hike is due to a sharp rise in the global price of wheat in the past month, which raised the prices of flour, a key factor in the bread's price," the ministry said, adding that "the rise in fuel prices in the last month contributed to the hike in bread prices, which haven't changed in 18 months."
Prices of oil, electricity, water and real-estate have also risen in recent months.
The ministry's move is likely to generate consumer protest, since Israelis are already facing a sharp austerity plan, which includes tax hikes and budget cuts. The plan, laid out by Prime Minister Benjamin Netanyahu and Finance Minister Yuval Steinitz, is meant to fight a burgeoning deficit in the 2012 budget.
Last summer, loud public protests over the high cost of living brought about massive nationwide social welfare protests, including tent encampments in city centers and a series of rallies, the largest of which brought more than hundreds of thousands of people into the streets.
However, the government's recent moves and price hikes have not managed to rally such numbers this summer, with only several thousand Israelis joining recent demonstrations against the economic measures.