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Iran hikes bread prices again amid ailing economy

Updated: 2011-04-26 15:45

(Agencies)

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TEHRAN, Iran - Iran's government has raised bread prices up to 25 percent, the second hike in four months, as authorities are trying to cut subsidies to ease pressure on the economy straining under international sanctions.

State IRNA news agency is quoting deputy governor of Tehran province, Nematollah Torki, as saying the new price will be effective as of Tuesday.

A loaf of the popular Sangak bread has gone up from 4,000 rials (about 36 cents) to 5,000 rials (about 45 cents).

Bread prices first tripled after the subsidy cuts came into effect in December as President Mahmoud Ahmadinejad moved to reduce the massive drain on the state budget from subsidies on foodstuffs and energy.

Every Iranian receives the equivalent of about $45 per month to compensate the subsidy cuts.

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