"I will not sign a directive that would raise the price of bread," Industry, Trade and Labor Minister Eli Yishai said Sunday.
Bakeries demanded from the Finance Ministry to raise the price of bread by at least eight percent, following a rise of 35%-40% in the price of flour worldwide.
The ministry proposed raising the price of bread by 12.5%. Yishai said raising the price without finding a means of compensating the less affluent populace was inconceivable.
Bread is one of a group of products - milk, eggs, salt, yeast and a whole list of dairy products - which are price-controlled by the state. These products are supposed to be equally priced irrespective of the locale in which they are sold.