Saturday, December 25, 2010

Hyperinflation arrives with the end of price subsidies in Iran


The street-price of bread is reported to have doubled in Tehran this week as price subsidies were removed from energy and food. Taxi prices jumped 40 per cent in reaction to a 900 per cent hike in diesel prices. Electricity and water prices jumped 300 per cent and household cooking gas by 500 per cent.

Officials said that food and energy subsidies have been costing Iran $100 billion a year and can no longer be afforded. They cited recommendations from the IMF suggesting the subsidies should be on

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