The Israeli Dairy Board approved raising the price of milk and other price-regulated dairy products such as cheese and butter by 4.95 percent on Sunday, the latest blow to Israeli consumers contending with the inflating costs of goods.
Reports indicated that the board initially mulled a 14% hike. However, negotiations between the dairy board, the Finance Ministry and the Agriculture Ministry resulted in a compromise of 4.95%.
The price of milk will be frozen at the higher rate until May 2023, at which point it will automatically revert back to its original price before the hike, though it may be raised again in the future.
Despite living with inflation levels at around half the rate of the rest of the developing world, Israeli consumers have felt the pinch of rising prices in nearly every consumer category.
Israel’s inflation rate in July was 5.2% year over year, the highest in decades, but still lower than the 8.5%…