Food inflation squeezes Iranian household budgets

Food prices are rising sharply across Iran, forcing households to cut back on basic items as wages fail to keep pace. The Statistical Centre of Iran said food inflation rose 128 percent in Tir, the Iranian calendar month from June 21 to July 20, compared with a year earlier.

Inflation topped 100 percent in eight of the 10 main food groups. Oils and fats rose 261.5 percent, dairy products rose 147.1 percent, meat and related products rose 145.2 percent, and bread and cereals rose 116.7 percent.

Shoppers in Tehran said they have stopped buying items such as red meat, preferred rice and higher-quality cooking oils. A grocery owner said wholesale prices change daily, making it difficult to sell on credit when future costs are uncertain.

The strain comes as Iran faces war, a naval blockade and a collapse in the value of its national currency. In Tehran, one shopper said the poverty line had risen to 900 million rials, a little more than $654.

Read the full story at Al Jazeera.