Media In Iran Report A New Surge in Food Prices

The conservative Mehr news website on Friday published the latest report on rising prices, as many newspapers and websites have been covering the issue throughout this week.

Mehr said that one kilo of sugar is now offered for more than one dollar, which is a lot of money for an Iranian worker making $150 a month. Rice, another main food staple has risen to as much as $4 per kilo.

Retailers have also begun raising the price of vegetable cooking oil, as they say supplies from producers have decreased.

Food prices have reportedly increased by more than 60 percent since the beginning of 2021 and more inflation could be on the way if the government reduces import subsidies according to a parliament decision to save money.

Officials said Thursday the government of President Ebrahim Raisi has decided not to implement the law to cut subsidies for the time being. One official insisted that last month the central bank appropriated $11 billion for imports, although he said about $4 billion was for essential goods. He did not specify what imports were covered by the remaining $7 billion.

Prices for most essential goods are nominally fixed by the government, but the private sector often disregards the guidelines based on supply and demand. Many complain to the media that merchants inflate prices perhaps with the help of government bureaucrats and politicians.