Evaluating the impact of rising food prices on the cost of living of Iranian households

In recent years, the ever-increasing price of food has caused serious concern in terms of providing food expenses and maintaining the governorate's level of food security. Therefore, this study examines the effects of the increase in the price of food products on the cost of living index of urban and rural deciles. In order to achieve the objectives of the study, the supply and use tables of 2016 were used in the form of extended Input-output based on the integrated supply and use tables. 24 items including protein products, vitamins, carbohydrates, caffeine and tobacco products were studied. The results of this study showed that the largest share of the living expenses of urban and rural households is associated with bread. The lowest expenses are related to different types of drinks. Except for all types of red and white meat, packaged fruits and vegetables, and dairy products, the cost of living of rural households increases more than urban households due to the increase in the prices of other food products. Among the income deciles, mostly the first to fourth deciles experience the highest cost of living due to the increase in the price of food products. Therefore, since rural households bear the cost of providing food more than urban households, and income deciles are affected unequally. Also, the price increase of different products (24 items) will have different effects on households. Therefore, it is suggested to control the increase in the price of the most effective products in different ways and if the support policy is considered by the policy makers, it should be adopted and applied according to the different urban and rural deciles and according to the results obtained.