Prices in Tehran's traditional bakeries have been increased by 25 percent as part of a nationwide plan Iran to phase out food and energy subsidies.
The new prices for Sangak, Barbari, Taftoun and Lavash, the four main varieties of traditional bread in Iran, are to be applied in bakeries from today, Abbas Ghobadi, head of Tehran province's commerce organization said, according to the state- run Mehr news agency.
Iran, which is grappling with international economic sanctions over its nuclear program, started a five-year plan in December to phase out subsidies on fuel, electricity and basic consumer goods. The government is paying a monthly 455,000 rials (about $43) to Iranians who have signed up to receive grants to compensate for the plan's inflationary repercussions.
A Sangak loaf will now cost 5,000 rials, Ghobadi said. Barbari, Taftoun and Lavash loaves will cost 3,750 2,500 and 1,250 rials respectively, he said.
The new price is the maximum at which the bread can be sold in Tehran, the official said, adding that governors in provinces outside the capital are allowed to lower prices at their discretion according to local needs.
Bloomberg
