Essential Goods on the Road to Inflation; Some Items in the Livelihood Basket Have Increased Again

Less than three months after Ali Khamenei, the Supreme Leader of the Islamic Republic of Iran, emphasized "controlling inflation"; essential goods subject to regulated pricing have experienced price increases of up to 35%, and according to the newspaper "Hamshahri," this new inflation is just the beginning. In this regard, the head of the Trade Development Department of the Ministry of Agriculture has announced another increase in sugar prices, stating that the "Market Regulation Headquarters" has set the new consumer price for sugar at "28,000 tomans." Ahmad Khani Nowzari has communicated the new prices in a letter to ensure the official price increases by the government continue. However, this price increase is not limited to sugar; according to the "Mehr News Agency," the meat market remains tumultuous and chaotic, with the price of lamb meat recently exceeding half a million tomans, and there is no news of cheap meat in the market. This conservative media outlet further reported that government pricing regulations are not being followed in the market, stating that "no one pays attention to the government-set price of 73,000 tomans for chicken," with city center protein vendors selling chicken at "85,000 tomans." The website "Hamshahri Online," affiliated with the Tehran Municipality, also reported a 30% increase in edible oil prices under the title "Oil at the Beginning of Inflation." Based on this media's field report from retail outlets across the city, this price increase has occurred quietly and without coordination. Reports from Iran indicate that dairy prices have also changed for some items compared to last week, with changes occurring without official announcements from government authorities, such that some products from certain brands, like "stirred yogurt at a price of 115,000 tomans," are being offered. Mehr News Agency noted that "the prices of a large portion of food industries have changed but have not entered the market" because products produced at previous prices are still available. The ongoing market situation and the implemented price increases have not satisfied consumers or producers. Accordingly, following the arbitrary increase in dairy prices by producers, the Iranian Dairy Industries Association attributed this increase to the government's excessive delay in determining dairy product prices, which has caused losses to livestock farms. On May 2, a member of the board of directors of the Meat Producers Union announced that the live chicken price at the farm gate was set at 52,000 tomans per kilogram and 73,000 tomans for consumers. Attaollah Hassanzadeh deemed this price temporary and contingent on the provision of inputs and stability in production costs. The rising prices of essential goods and the reduced access of people to necessary items have ultimately led the government to implement the "electronic coupon" plan. In this context, the Deputy Minister of Cooperatives, Labor, and Social Welfare announced on June 3 that 11 essential goods would be included in this plan, stating that a total subsidy and 20% credit would be deposited into the accounts of the first three income deciles of subsidy recipients. Alireza Asgariyan announced that the intended subsidy for this plan is 80,000 tomans per person. The government of Ebrahim Raisi began providing some essential goods through coupons nationwide at the beginning of last week; however, prices in the market continue their unstable trend. Iraq has "agreed" to pay about three billion dollars of its debt to Iran. Producers do not comply with the government; dairy prices have increased. More than 30 ships carrying essential goods are halted in the Persian Gulf; there is no currency for unloading. The price of chicken has reached 100,000 tomans per kilogram; per capita consumption has decreased by 6 kilograms. The consequences of inflation are evident in livelihoods; food crisis and malnutrition in Iran. A member of the Chamber of Commerce stated that the "command economy" has rendered Iran's economy ineffective. The annual inflation rate in May of this year is unprecedented in the past 78 years.