Accessibility links

Breaking News

Iran Raises Price of Bread in Subsidy Phaseout

Iranian worker Jafar Rahimi works at his shop in central Tehran, Iran, after Iran's President Mahmoud Ahmadinejad announced the start of a plan to slash energy and food subsidies, part of government efforts to boost the nation's ailing economy, Dec. 18, 2

Iran has raised the price of bread by as much as 25 percent as part of a plan to phase out government subsidies.

The price hike, which took effect Tuesday, increases the cost of the four most popular types of bread to as much as 45 cents a loaf.

In January, Iran's top legislative oversight body, the Guardian Council, approved a bill that gradually phases in cuts for government subsidies for goods such as fuel, electricity and bread.

The plan is designed to help stabilize Iran's economy as it struggles under international sanctions.

In March, Iran raised its minimum wage for laborers in cities to approximately $350 per month. About one-third of city workers earn minimum wage, but people working in villages often receive lower wages.

Iran is under U.N. Security Council-imposed economic sanctions over suspect parts of its nuclear program. Iran says its nuclear ambitions are peaceful. Iran has said it feels no impact from the sanctions and that subsidy moves are unrelated to Western actions.

Some information for this report was provided by AP.

Follow our Middle East reports on Twitter
and discuss them on our Facebook page.