Publication of Items Eligible for 'Coupon'; 90% Increase in Living Costs

According to the detailed list of food items under the 'National Electronic Coupon Plan,' which includes eleven food items, the prices of these goods have increased by more than 90% from May 2022 to May 2023. The Ministry of Cooperatives, Labor, and Social Welfare reported that the payable price for 11 essential goods, including low-fat bottled milk, cheese, chicken meat, eggs, liquid oil, pasta, Iranian rice, dairy products, sugar, legumes, and frozen beef, was 439,000 tomans in May last year, which has risen to 846,000 tomans this year. Voice of America’s investigations indicate that the prices of essential goods published by the Ministry of Welfare are far from the realities of society, as Iranian media report the price of eggs at 100,000 tomans and chicken at around 90,000 tomans, while the ministry lists them at 56,000 and 73,000 tomans, respectively. This table was published following the implementation of the electronic coupon plan, which, according to the Ministry of Labor, includes 25 million Iranians. Under this plan, the government has set the prices from May 2022 as a baseline and provides the 'difference' in the form of subsidy coupons. Alireza Asgari, the Deputy Minister of Labor, announced that the rate of 'nutritional poverty' is at 91%. In this context, a journalist in Iran told Voice of America that the Islamic Republic has 'no choice but to distribute coupons' and that the situation is similar to 'the Soviet Union in the years leading up to its collapse.' This unnamed journalist and political economy analyst stated that 'it seems the Iranian regime has no option but to distribute coupons, as official statistics show that poverty is spreading significantly in the country.' The increase in prices has also led to a decrease in consumption, with Voice of America’s findings showing that per capita consumption of food items in 2022 saw a 60% decrease in fruit and vegetable consumption. The consumption of chicken meat experienced a 50% reduction before prices reached 100,000 tomans, and oil and butter saw a combined 40% decrease in consumption among the public. Other food items also recorded declines, with pasta down 30% and eggs down 25%. Rice, milk, and dairy products faced a 20% decrease in consumption over the year ending in March 2023. Jamshid Asadi, an economist, told Voice of America’s Persian section that the Islamic Republic cannot combat a tough economic year with coupons, as inflation is 'extremely' high and there is a production recession. He stated that although the Islamic Republic is trying to mitigate public discontent through rationing, the electronic coupon does not solve the issues of inflation and low consumption.