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Iran Raises Price of Bread in Subsidy Phaseout

   VOA News  April 26, 2011
   Iranian worker Jafar Rahimi works at his shop in central Tehran, Iran,
   after Iran's President Mahmoud Ahmadinejad announced start of plan to
   slash energy and food subsidies in attempt to boost the nation's ailing
   economy, Dec. 18, 2011 (file photo)

Photo: AP

   Iranian worker Jafar Rahimi works at his shop in central Tehran, Iran,
   after Iran's President Mahmoud Ahmadinejad announced the start of a
   plan to slash energy and food subsidies, part of government efforts to
   boost the nation's ailing economy, Dec. 18, 2010 (file photo)

   Iran has raised the price of bread by as much as 25 percent as part of
   a plan to phase out government subsidies.
   The price hike, which took effect Tuesday, increases the cost of the
   four most popular types of bread to as much as 45 cents a loaf.
   In January, Iran's top legislative oversight body, the Guardian
   Council, approved a bill that gradually phases in cuts for government
   subsidies for goods such as fuel, electricity and bread.
   The plan is designed to help stabilize Iran's economy as it struggles
   under international sanctions.
   In March, Iran raised its minimum wage for laborers in cities to
   approximately $350 per month. About one-third of city workers earn
   minimum wage, but people working in villages often receive lower wages.
   Iran is under U.N. Security Council-imposed economic sanctions over
   suspect parts of its nuclear program. Iran says its nuclear ambitions
   are peaceful. Iran has said it feels no impact from the sanctions and
   that subsidy moves are unrelated to Western actions.

   Some information for this report was provided by AP.
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