Iran’s Economic Crisis: Bread Prices Surge 140%, Schools Close Amid War, Citizens Pay Triple for Rations

Residents across Iran are reporting severe bread shortages and steep price increases, with many forced to pay up to three times the official rate for a single loaf, according to citizen accounts received by Iran International and local media reports.

The crisis is worsening as the Iranian economy continues to deteriorate under the strain of ongoing conflict, with inflation soaring and basic staples becoming increasingly unaffordable for ordinary households.

Long lines have formed outside bakeries in Tehran and other cities as flour supplies dwindle, while black market prices for bread far exceed official rates, undermining access to a key dietary staple for millions.

The economic pressure is compounded by widespread school closures due to the war, with many students now relying on televised lessons as classrooms sit empty and educational infrastructure suffers from the conflict’s impact.

Analysts note that Iran’s economy was already in a fragile state before the recent hostilities, with prior months seeing food inflation reach annual rates of 64% in October and accelerating to 105% by February, pushing overall inflation to 47.5% on the eve of war.

Since the conflict began six weeks ago, residents have reported price increases of around 40% for essential goods, according to accounts shared with Reuters, while the national currency has lost significant value on the black market.

The central bank has responded by issuing increasingly large denomination notes, introducing the 5 million rial note followed by a 10 million rial note just a month later, reflecting the deepening currency crisis.

Officials close to the Iranian establishment have described the economy as the regime’s “Achilles’ heel,” expressing concern that ongoing economic strain could fuel renewed unrest if the government fails to meet payroll or provide basic services.

Without access to frozen overseas assets or sanctions relief, authorities face mounting difficulty in sustaining state operations, raising fears about the government’s ability to maintain control amid growing public hardship.