Bread Prices in Iran Double Overnight Due to Rising Wheat Import Costs

The price of bread (known as 'noon' in Persian), a staple food for Iranians, has doubled overnight.

The Tehran Province Wheat, Flour, and Bread Working Group announced on June 23 (local time) that, following a resolution by the Tehran provincial government, the price of bread produced with government-subsidized flour would be increased effective from midnight that day.

Depending on the type of bread, prices have risen from 14,000 rials to 27,000 rials for Lavash, from 53,000 rials to 100,000 rials for Barbari, and from 76,000 rials to 155,000 rials for Sangak.

At market exchange rates, this translates to approximately 26 to 150 won per loaf, while based on the Central Bank of Iran's unified official exchange rate for foreign trade, it ranges from about 32 to 184 won.

As bread is a staple food and its price is central to inflation stability, the Iranian government provides subsidies for flour, which is then supplied to government-designated bakeries at a lower cost.

These bakeries are permitted to sell bread only at the prices set by the government.

While the government-subsidized price of bread remains relatively low when considering the income levels of the Iranian public, doubling the price in a single day is a highly unusual measure.

This is interpreted as a result of the government's severe financial difficulties due to war and the sharp rise in exchange rates, which has increased the cost of wheat imports.

The monthly minimum wage in Iran, announced in May, is approximately 200 million rials (about 230,000 won) for a single person.

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