(photo credit: SARIT GOFFEN)
The so-called Cornflakes Law, which Finance Minister Moshe Kahlon has heavily pushed, may take a year to start having a major effect on food prices.
“We believe that the impact on the food market in the coming year is not expected to be dramatic,” said Ofer Klein, head of the economic research division at Harel Insurance and Finance, in a Tuesday analysis.
The cornflakes law tears down barriers that have kept dry foods such as cereals insulated from competition, and was touted to save consumers hundreds of shekels a year.
Those savings may still be coming, but not quickly, said Klein.
Instead of having an immediate effect on price, the reform will play out slowly, as new importers begin exploring the market, finding partners, navigating kashrut laws, and signing contracts.
By the end of 2017, prices will see a more significant effect.
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