Prices of staple foods rising in Iran

Business Materials 19 August 2013 16:23 (UTC +04:00)

Azerbaijan, Baku, Aug.19/ Trend F.Karimov/

Prices of 11 groups of foods, including dairies, rice, beans, fruits, meat, sugar, and edible oil have risen in Iran compared to the previous year, the Mehr News Agency reported.

According to a report released recently by the Central Bank of Iran, dairy products, eggs, rice, fruits, sugar, and edible oil rose by 17.6 percent, 78.3 percent, 69.4 percent, 63.2 percent, 39.7 percent, and 57.9 percent respectively, year on year.

Before the ending of the presidency of Mahmoud Ahmadinejad, MP Abdolkarim Hashemi said that the administration is facing problem in providing money for paying cash subsidies to the public.

On August 14, the new administration of president Hassan Rouhani has paid its first cash subsidy to Iranian people.

From the beginning of the subsidy plan, Iranian citizens have received 10.9 trillion rials (approximately $44.9 billion, based on current official USD rate of 24,260 rials).

Iranian government pays $1.3 billion monthly to 72 million Iranian citizens. The government's revenue rising the prices during last solar year (ended on March 20) reached 10.7 billion (based on official usd rate of 24,260 rials), and $4.1 billion was allocated from budget to paying cash subsidies to people.

However, during last solar year, Iranian government paid 17.3 billion (based on official usd rate of 24,260 rials). This indicates that government faced a $2.7 billion deficit in subsidy plan.

All figures are calculated based on current USD rate to rial (24,260), while during last solar year the rate was 12,260 rials.