Iran is grappling with soaring prices across essential commodities, further deepening the economic strain on households. From dairy products to bread, fuel, and gold, the sharp price hikes are stirring public concerns, with experts warning of wider economic implications.
Recent reports from state media are highlighting significant price increases in the dairy sector. According to Eco Iran, on October 19, Mohammad Hossein Moulakhah, Director General of the Consumer Protection Agency, said, “The price changes for dairy products range from 15% to 30%, depending on the product. Companies must adhere to these regulated prices.” Authorities are working on balancing prices for items such as butter and cream through export controls and pricing adjustments on fat content.
The cost of basic goods such as bread has also seen steep increases. Mizan Online reported that, despite recent price adjustments, the price of bread in Tehran continues to rise. “On September 10, the official price of bread was increased, yet despite this adjustment, simple Sangak bread, which is supposed to be sold for 5,000 tomans, is rarely available for less than 10,000 tomans,” the report stated.
#Iran News in Brief
Latest report from Iran's Statistical Center reveals staggering food price hikes over the past year. Red meat and chicken soar by 93%, while fish and seafood spike by 64%. The #economic strain is evident as buying basics feels like borrowing for luxury. Read… pic.twitter.com/w8wqWBl1w5— NCRI-FAC (@iran_policy) February 29, 2024
The issue extends to currency and fuel prices as well. Economic expert Farshad Momeni recently revealed ongoing discussions within key government circles to prepare for potential price hikes. “In the past two or three weeks, there have been over 30 meetings among key economic officials to lay the groundwork for increasing the price of foreign exchange and gasoline,” he said in a statement on October 19.
Meanwhile, debt levels continue to skyrocket. The state-run Entekhab website reported a significant rise in government debt to banks, stating, “The government’s debt has reached 1,600 trillion tomans as of July, a marked increase from previous years. When the thirteen [Ebrahim Raisi] administration began, the debt stood at 644 trillion tomans to the banking sector and 201 trillion tomans to the Central Bank. Over less than three years, these figures have surged by 148% and 128%, respectively.”
Even the gold market has not been spared, as economic uncertainties drive prices to new highs. Reports on October 20, highlighted that the price of a new design gold coin surpassed 56 million tomans, marking a new record in Iran’s history.
#Iran News in Brief
While officials of the Raisi government continue to deny price hikes of basic items, today, Iranian state media reported a sudden 40% increase in #bread prices in at least 15 different provinces. https://t.co/AzM4YZWljj pic.twitter.com/fclWZeQJvo— NCRI-FAC (@iran_policy) November 7, 2023
The combined impact of rising prices, ballooning debt, and ongoing economic mismanagement is pushing Iran closer to a financial precipice. Rather than addressing these structural issues or cutting spending on foreign military adventures, missile programs, and nuclear development, the regime is choosing to burden its own people by increasing the cost of basic necessities. This approach is not only deepening the economic crisis but also stoking public anger, setting the stage for further social unrest as the Iranian population grows increasingly frustrated with a government that prioritizes its controversial agendas over its well-being.
