Iranians Struggle For Their Daily Bread As The War's Economic Costs Rise

Despite years of crippling economic sanctions, Iranians were still able to put bread on the table. Until now.

Soaring costs and supply shortages exacerbated by the war with the United States and Israel have left much of Iran's infrastructure and industries in tatters, fueling runaway inflation and joblessness.

Bread has historically been among the few staples kept affordable through government subsidies, with the state supplying flour to bakeries at low prices.

But bread prices have doubled from a year ago in places such as Tehran, leaving many struggling to put the staple on their dining tables.

"Things are very bad," one woman in the capital told RFE/RL, "and we're actually better off than a lot of people."

Describing the cost-of-living crisis in Iran, the woman, who requested anonymity for fear of government reprisal, said she no longer buys meat, rarely eats out, and has not purchased anything for herself in months.

Tehran and Washington signed an interim deal aimed at ending the nearly four-month-war and are currently in a 60-day negotiating window to try to come to a full peace deal.

But while diplomats chew on the wording of an accord, millions of Iranians are still wrestling with the economic fallout, with some cutting down to just one meal a day.

Bread prices are determined by the authorities. In Tehran, officials allowed a massive price increase on June 23, reneging on pledges to keep subsidies in place so that bread would remain affordable.

Informal price hikes have already spread to other provinces where costs have doubled. The price of lavash, usually the cheapest bread type in stores and bakeries, has increased to 27,000 rials ($0.02) from 14,000 rials ($0.01).

SEE ALSO:
Iranians Have 'Become Poor' As War Shatters Already Reeling Economy

Rising Food Inflation

The rising cost of food doesn't stop with bread. Prices in the country of around 90 million jumped about 130 percent in May, according to the Statistics Center of Iran. It was the third consecutive monthly increase in overall inflation, which is just below 58 percent.

The International Monetary Fund (IMF) projects Iran's overall inflation will hit nearly 69 percent in 2026. That would be the highest since the Islamic Revolution in 1979.

For years, Iran’s economy has been crushed by crippling US sanctions and government mismanagement. In January, a collapse in the value of the national currency triggered mass anti-government protests.

Just weeks later, US and Israeli air strikes destroyed or damaged the country's key energy and transport infrastructure. Key industries were also targeted, disrupting domestic production and hiking prices for basic food items.

A US naval blockade on Iranian ports and vessels disrupted Iran's oil exports, the lifeline of its economy. Meanwhile, Iran’s decision to shut down the Internet for months hurt many businesses and professionals.

The strain is visible across households in Iran, where the minimum monthly salary is around $100.

According to a report published by the Donya-e Eqtesad newspaper, an average family of four is spending around 70 percent of their income on basic food items.

'Everything Has Gone Up'

Another woman in Tehran said her friend, a single mother, was forced to move back in with her parents after being unable to pay rent.

"Everything she earns goes on food, only the essentials," she told Radio Farda. "She can't even afford to buy her child a toy."

Hossein, a baker, said the rising price of bread is a result of higher rent and utility costs.

"You're only seeing one side of the story," he said in a comment to Radio Farda on Instagram. “Everything has gone up a hundredfold."

Tehran-based economist Javad Rahimpour told Radio Farda that Iran’s economy reflects a structural failure.

"There is no mechanism in any sector that would force anyone to manage or control their costs," he said. Businesses at every level simply accept rising costs and pass them on to consumers, he said, describing it as "transmitted mismanagement."

Rahimpour said a comprehensive peace deal with the United States could provide some temporary relief but warned that Iran's trade and economic system "needs extensive restructuring" regardless of any agreement.

 
Iranians Struggle For Their Daily Bread As The War's Economic Costs Rise

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