Iran International
Bread prices across Tehran province have risen by as much as 100%, pushing the cost of one of the most important staple foods sharply higher and raising fresh concerns over government plans to overhaul the country's subsidy system.
Residents arriving at bakeries on Tuesday found new official prices in effect following an order issued by Tehran provincial authorities and announced by the Iran Chamber of Guilds' flour and bread working group. Under the new rates, lavash flatbread now costs 27,000 rials (2 cents), yeast-leavened barbari 100,000 rials (6 cents) and sangak 155,000 rials (10 cents).
The average monthly wage in Iran is estimated at around $150. A family relying solely on bread for its food consumption would spend roughly $8-$17 per month, depending on the type of bread purchased.
The increase came only two days after Agriculture Minister Gholamreza Nouri Ghezeljeh said bread price rises were not under consideration and that the government was pursuing plans to transfer subsidies from bakeries to households through an expanded electronic voucher system.
The latest hike continues a trend that began during the presidency of the late Ebrahim Raisi and has accelerated under President Masoud Pezeshkian. Compared with less than a year ago, official price schedules show sangak prices have risen by 104%, barbari by 85% and lavash by 93%.
Before September 2024, when the US dollar traded at around 600,000 rials on the free market, Lavash cost 5,000 rials ($0.008), while Barbari sold for 18,000 rials (3 cents) and Sangak for 30,000 rials (5 cents).
The increase follows similar price rises elsewhere in the country. Bread prices in West Azarbaijan province rose by 70% to 100% last month, while prices in Mashhad increased by an average of 49% in mid-June. Reports from other provinces have also pointed to either higher bread prices or reductions in dough weights, a practice some consumers and analysts describe as hidden inflation.
Card-based bread system
The latest increase comes as authorities continue to rely on the Nanino digital monitoring platform, introduced in 2022 to distribute subsidized flour based on bakery sales.
Many bakers say technical problems and disputed calculations have reduced their flour allocations. Although authorities insist there are no limits on bread purchases, consumers in many areas report restrictions as bakeries attempt to stretch subsidized flour supplies.
Subsidy cuts spark concern
The Pezeshkian administration has steadily reduced support for wheat and flour subsidies since taking office and is examining plans to integrate bread subsidies into the electronic voucher program, a move that could effectively end the current subsidy structure.
The proposal has generated concern even among media outlets generally supportive of state policies. News website Khabar Online warned that public tolerance for rising prices was wearing thin and that additional pressure linked to a staple as widely consumed as bread could provoke a strong public reaction.
"Public tolerance for price increases has reached its limit, and society may face severe tension and shock from any new pressure, particularly over a product such as bread that is consumed extensively across cities, villages and lower-income households," the outlet wrote.
Bakery owners say they face growing costs for labor, utilities and raw materials while operating under regulated prices and delayed subsidy payments. Economists and labor activists warn that repeated increases in bread prices disproportionately affect low-income families because bread remains a key component of household consumption.
The price rise comes as inflation remains elevated. According to Iran's Statistical Center, consumer prices in May were 83.9% higher than a year earlier, while annual inflation reached 57.7%.
As the government moves ahead with subsidy reforms, the price of bread is increasingly becoming a measure of the economic strain facing millions of families across the country.
"Neither have we had a meeting with the director general of the IAEA, nor is there a plan for agency inspections of Iran's damaged nuclear facilities," Iranian Foreign Ministry spokesperson Esmail Baghai told a news conference.
"There is no protocol for this issue," he said.
Vance said on Monday that talks in Switzerland between US and Iranian officials had laid a "very good foundation" for a final agreement to end the war.
Asked when International Atomic Energy Agency inspectors could return, he said the process would start "at a minimum this week" and that conversations with the agency "could happen as soon as today."
President Donald Trump said on Monday that Iran "will agree to have Major Weapons Inspections."
Iran suspended IAEA access to sites hit during last summer’s 12-day war. The UN nuclear watchdog later withdrew its remaining inspectors from the country.
Frozen funds and US farm sales
Baghaei also rejected the idea that Iran had agreed to use frozen funds to buy US agricultural goods, after Vance said the issue had come up in the talks.
Vance said the US had asked Qatar to help set up a mechanism to direct the money.
"We could ensure that the money goes where we want it to go," Vance said. "That will obviously be a big part of the negotiation in the days to come."
He said the arrangement would help "American farmers" and the people of Iran, but added that the funds would not be released unless Washington saw further progress.
Baghaei said Iran would decide how to use its assets based on national interests and needs.
"Any decision will be made based on the interests and welfare of the country," he said.
He said Iran’s agriculture ministry and other bodies would decide on purchases based on price and quality.
Missiles outside talks
Baghaei said Iran’s missile and defense capabilities were not part of the negotiations and would not be discussed.
"Iran's defensive and missile capabilities have absolutely not been part of our talks and will never be a subject of negotiation with any party," he said.
He said Iran and the US had no direct contact after the four-party meeting in Switzerland stopped, and that messages continued through mediators Qatar and Pakistan.
"After the decision to stop the four-party negotiations, we had no direct contact with the American side," Baghaei said.
He said the sides had not held detailed talks on nuclear issues in Switzerland.
"Apart from the general presentation of positions by the American side, no detailed discussion on the nuclear issue took place," he said.
Oil waiver
The US Treasury on Monday issued a 60-day license allowing Iran to produce, sell and deliver crude oil and petrochemicals, with related banking, insurance and transport services.
Baghaei said the oil-sale authorization had taken effect and Iran could use released or previously blocked assets to buy goods it needed.
"What is important for us is access to assets that have been unjustly blocked," he said.
Treasury Secretary Scott Bessent said the waiver was linked to Iranian commitments to keep the Strait of Hormuz open and allow IAEA inspectors back into the country.
Lebanon mechanism
Baghai said Iran, the US, Qatar, Pakistan and Lebanon had agreed in principle to a mechanism to oversee the ceasefire in Lebanon and prevent further clashes.
"The details of this mechanism require further examination and work," he said.
Iranian Foreign Minister Abbas Araghchi has said Lebanon would be the first "real test" of the agreement.
