Consumers Suffer as Wheat and Fuel Prices Skyrocket

NTDTelevision 2011-03-01

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Wheat is a primary staple food for the world's populations. Lately, the world market price of wheat has been on the rise as have fuel prices. This puts increasing pressure on consumers and business owners alike. Our correspondents went out to assess the impact of increasing wheat prices on the public in Israel.

The current large increase in the cost of wheat and raw materials in the world's markets has hit manufacturers, as can be expected.

But it's consumers in the lower social strata who carry most of this burden.

Israel is a case on point.

Avi Ushinsky runs a bakery in the town of Rishon. He explains:

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The quality of products has gone down as a direct result of cheaper substitutes found by consumers.

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Stress is being felt by bakers and their clients as well. The bakeries are only a link in the chain.

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And what does the owner of a coffee and pastry shop have to say about the situation?

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[Nurit, Pensioner]:
"I'm retired and live off social security, and it's hard to pay so much money, and this is the only kind of bread that I can eat. So, I buy less."

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And it stirs up resentment against the government that is seen as not doing enough to help.

Israeli Prime Minister, Benjamin Netanyahu, spoke recently about the situation in a press conference.

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The Prime Minister also believes that other countries and powers such as the United States and Japan do not have any control over the increase in the cost of raw materials.

[Israeli Prime Minister Benjamin Netanyahu]:
"We want to set a simple principle by which he who has not will receive help. We will not help those who have, we will help those who do not have."

Perhaps what the Israeli Prime Minister has said could give Israelis who have been hurt by the current situation some hope.

Reporter:Janet Zrian Photographer:Anat Markram
NTD News, Israel

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