As bread prices rise, poor cannot afford it

August 06, 2021

Iranians are buying less bread since the government raised prices in mid-July for subsidized flour and allowed bakeries to charge more for all varieties of bread, the daily Hamshahri reported August 2.

Two weeks after prices increased at least 12 percent to as high as 30 percent in some regions, industry insiders told the newspaper people are buying 20 to 30 percent less bread, despite the fact that bread is the basic food item of the poor.

There are two kinds of bread bakers in Iran—those who receive subsidized flour and have to abide by government prices and those who produce for the high-end market and are free to set their own prices.

Most working class families buy the cheaper bread from subsidized bakeries, and those are the ones who now have to pay much more for the main staple of the Iranian diet.

Hamshahri reports that for a family of five the monthly bill for bread can be $20. This seems very low compared with Western countries, but many wage earners in Iran barely make $100 a month. The family must also pay rent, buy other basic foods, and pay other expenses.

Annual inflation for food items is more than 60 percent and millions of families cannot afford chicken, which is the basic meat in Iran and has almost tripled in price.