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BREAD PRICES IN IRAN APPEAR STABLE.
State bakeries are paying 40 rials (1/2 cents, or $0.005) for 1 kilogram of flour, "Entekhab" reported on 14 August. "Entekhab" reported that the government decided that bakeshops will keep their prices at the same level as in the previous year (1381). State radio reported on 13 August that the bakeries will get electricity, water, and gas at the previous year's prices, too. According to "Iran" newspaper on 9 August, several meetings were held recently at the Commerce Ministry to discuss this issue and even a minimal increase in the bread price was rejected. Some of the possible price increase would have offset a rise in employees' wages, but even this was rejected. Bread is a major staple for Iranians, and the government subsidizes bread prices. BS

COST OF A CHICKEN IN EVERY POT FALLS IN IRAN. Mohammad Fayaz, director of the Tehran municipal organization of fresh fruit and vegetable merchants (Sazeman-i Miyadin Miveh va Tarehbar-i Shahrdari-i Tehran), said the price of chicken will be reduced from 18,000 rials ($2.25) to 12,750 rials ($1.60) per kilogram, "Entekhab" reported on 14 August. BS

Comment: Subsidized bread is the path to economic disaster.