Iran's Food Prices Rising Ahead Of Ramadan And Nowruz

The rise in food prices in Iran have been accelerating in recent weeks with two big factors driving food price inflation higher, Ramadan and Nowruz, set to begin in March.

This year Ramadan starts on March 10 and the two-week holidays of Nowruz, which is the start of the Iranian New Year on March 20, lead to a significant increase in food prices, where most people celebrate both with numerous parties and religious events with food as the main glue of the gatherings. Studies have proven that the Muslim fasting month has a significant effect on the inflation of food prices in other countries where the Ramadan is observed, such as Turkey.

The anticipated increase in prices prompts the Islamic Republic to increase its hackneyed measures aimed at price control, including threats to shut down businesses or punitive measures for wholesale middlemen or retailers who do not comply with state-regulated rates. Other measures include supplying subsidized food items, distributing basic goods through state-owned chain stores, and banning exports.

However, these measures have minimal impact as mandated prices often do not correspond to the realities of the market and only lead to confusion and corruption by state companies who control the distribution networks of basic food items such as meat, edible oil, rice, flour, and sugar. Moreover, goods introduced by the government to stabilize the market are typically of low quality and quantity.