Iran sees bread prices double, widening cost‑of‑living squeeze

In Iran, the price of staple bread has roughly doubled, with the inflation rate for loaf varieties reaching over 140 % in the first five months of 2025. Prices reported by Mohammad Javad Karami, head of the flour‑and‑bread task force, rose from 5,300 IRR to 10,000 IRR for Barbari, from 7,600 IRR to 15,500 IRR for Sangak, and similar jumps for other types.

The minimum monthly wage was set at 16,625,550 IRR, covering only about 37 % of the estimated basic consumption basket for low‑income workers, leaving a gap of more than 60 %. The government raised its wheat‑and‑flour subsidy budget but the measures have not halted price growth. At the same time, officials are debating reforms to the electronic subsidy‑card (kaleh‑barg) programme. A proposal to increase its credit by 50 % would require roughly 500 trillion IRR, prompting the budget chief to suggest eliminating the top four income tiers from the scheme. Ministries are split on the approach, fearing that cutting higher‑income tiers could leave some needy households without support.

The combined effect of soaring bread costs and uncertainty over subsidy‑card allocations is intensifying the financial strain on workers, retirees and other low‑income families across the country.