Israel deems several types of bread to be basic commodities and fixes their prices so that even the poorest families can afford them. The products include white and whole wheat bread as well the traditional challah bread.

Prime Minister Yair Lapid and Economy Minister Orna Barbivai announced July 25 that the prices of these regulated breads would be moderately increased. They explained that the government had reached an agreement with Israel's major bakeries to increase the prices significantly less than the bakeries wished. In exchange, the government agreed to lift price control measures by the end of April 2023. 

According to the announcement, for example, the price of unsliced white bread will rise by 5% instead of the bakeries' desired 36%, the price of sliced white bread will increase by 5.5% instead of 11% and the price of challah bread will rise by 8% instead of 21%. Another price hike is expected in December 2022.

The news came on the backdrop of rising inflation in Israel over the past few months. Israeli consumers experienced significant price hikes in a variety of products including eggs, milk, baby products, electricity and fuel.