Bread Price Hikes Force Iranians To Buy Half Loaves

As bread prices soar in 13 provinces, Iranians are being forced to purchase only half a loaf of bread due to the steep cost in an unprecedented trend.

Low-income workers in particular are feeling the brunt of the price surge with bread being consumed as part of two or three daily meals. This sharp increase in bread prices could potentially trigger an inflationary shock.

Iran's state television confirmed the price hike in the staple food on Thursday after weeks of contradictory statements from officials. Previous denials regarding the government's intention to increase bread prices have now been overshadowed by the reality of rising costs.

Following subsidy reforms in May last year, Minister of Economy, Ehsan Khandouzi, had explicitly stated that an increase in bread prices was a "red line" set by the President, with other officials echoing the sentiment. However, despite these assurances, bread prices have witnessed an increase in several provinces, risking fueling social unrest further.

In an interview with ILNA news agency, labor activist Framarz Tofighi pointed out that the high prices are not limited to bread alone. “Dairy products have vanished from workers' tables, rice has become unaffordable for many, and even sugar has seen significant price spikes,” he said.

Bakery workers are also suffering the consequences of the rising bread prices, questioning why they and the general public should bear the burden of increased bakery costs as they suffer surges in rent, taxes, and energy bills that remain unaddressed.

Currently the official annual inflation rate is 47.5 percent – the highest rate in Iran for more than 30 years -- but prices for food are most affected, with the price of cooking oil rising by more than three times annual inflation at 145 percent, and the price of meat also rising by 78 percent over a one year period (point-to-point), while around 60 percent of Iranians now forced below the poverty line.