Netanyahu acts on cost of living

Israeli Prime Minister Benjamin Netanyahu has ordered the creation of a task force charged with finding ways to alleviate the high cost of living, a day after huge protests.

At least 100000 people took to the streets in cities across Israel on Saturday night in the latest show of force by a protest movement that has exposed deep and widespread anger about the cost of living and income disparity.

At the start of his weekly cabinet meeting, Netanyahu said he would name "a team of ministers who will set up a round-table discussion with representatives of various sectors to allow them to share their concerns".

"The ministers will be charged with creating a practical plan to ease the financial burden on citizens, which will be presented to the government for approval and implementation," his office said.

"We must act seriously and responsibly to effect changes in economic priorities and tackle real hardships," Netanyahu said. It seemed unlikely that the announcement would be enough to damp down public anger in the short term or bring a halt to protests about the cost of everything from housing to child care.

Even as Netanyahu met his cabinet, members of the Israeli Medical Association, the doctors' union, gathered outside parliament as part of its demands for better wages and working conditions.

Israeli media report that activists are gathering support for two protest actions - a general strike today that has already gained the backing of the local authorities' union, and a plan for a mass withdrawal of cash from banks on August 8 to protest against high banking and credit card fees.

Since 2004, Israel's economic growth rate has averaged 4.5% and unemployment has fallen to around 6% from close to 11%.

But the gaps between Israel's rich and poor are among the widest in the Western world. In 2011, Israel ranked fifth for unequal income distribution among the 34 member states of the Organisation for Economic Co-operation and Development.