Iran doubles price of staple bread overnight as war strains public finances

The price of bread — the dietary staple of Iranians, known in Persian as "nan" — doubled overnight.

The flour and bread working group of Tehran Province announced Tuesday, local time, that it would raise the price of bread produced with government-subsidized flour effective midnight that day, in accordance with a resolution by the Tehran provincial government.

Prices varied by type: lavash rose from 14,000 rials to 27,000 rials per piece, barbari from 53,000 rials to 100,000 rials, and sangak from 76,000 rials to 155,000 rials.

At the market exchange rate, a piece of bread now costs the equivalent of roughly 26 to 150 won. At the Central Bank of Iran's unified official rate for foreign trade, the range is approximately 32 to 184 won.

The Iranian government subsidizes flour supplied to government-designated bakeries, keeping bread prices low as a cornerstone of price stability. Those bakeries may sell bread only at government-set prices.

While the subsidized price of bread remains low relative to Iranian income levels, doubling it in a single day is a highly unusual move.

Analysts attribute the increase to a severe deterioration in government finances caused by the war, compounded by a sharp rise in the exchange rate that has driven up the cost of wheat imports.

Iran's monthly minimum wage, announced in May, stands at about 200 million rials (about 230,000 won, or about $150) for single workers.

‘전쟁이라도 난 줄’ 코스피 폭락에 개미들, 무려 10조원 풀매수…사상 최고치 [투자360]

https://biz.heraldcorp.com/article/10785491