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- October 13, 202618°
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- USD49.220.00%
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- INTEREST37.00%-1.00
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- October 13, 202618°
Inflation in Iran Hits Highest Level Since World War II
Annual inflation in Iran has surged to 77.2%. As staple foods rapidly become more expensive in Tehran's markets, retirees and fixed-income families face increasing financial hardship...
Inflation in Iran has risen to a level not seen in years. Shoppers in the capital Tehran carefully check prices on each product on the shelves; however, for many families, shopping has ceased to be a daily necessity and has turned into a weekly calculation exercise.
Those browsing the stalls at Bastan Market in the western part of the city directly feel the increase in basic food prices. Retiree Mashhadi Firouz says that within a year, the price of rice per kilo has risen from about 1.8 million rials to over 5 million rials, and cooking oil has increased from 700,000 rials to more than 3 million rials. Firouz notes that his salary does not even cover a third of his household expenses.
Firouz explains that for the first time in many years, those living on fixed incomes have been pushed below the poverty line, and that the problem is not only the high prices but also the rapid pace of the increases, which leaves people helpless. According to him, daily shopping has become a discovery tour to learn the new prices.
Fatima, a 46-year-old housewife, says she has increased her weekly market visits from once to three times. This is not due to increased needs but rather an effort to find lower-priced products. Fatima states that red meat has become unaffordable, chicken is rarely seen on the table, and she even counts eggs one by one before buying.
According to Fatima, inflation is not a crisis that hits everyone equally at the same time; it is a selective pressure that severely affects low-income groups. As food prices rise, a large portion of a poor family's income goes to essential expenses.
Mehran, a 71-year-old grocer who sells wholesale in the southern Narenj district of Tehran, says the crisis affects not only buyers but also sellers. Mehran explains that people now only buy essential items, prices have doubled in less than four months, and as a result, he has started to stock fewer products in his store.
Mehran says he has never seen such a severe downturn in his 40 years of working life, surpassing even the harshest periods of sanctions. He emphasizes that he is not trying to make a profit but his sole aim is to keep the store inherited from his father open.
According to a new report from the Central Bank of Iran, annual inflation rose to 77.2% during the period from April 21 to May 20. Monthly inflation was recorded at 8.5%, with point inflation on goods reaching 113%.
This rate stands out as the highest level seen in Iran since 1942, during World War II. At that time, the war disrupted food supply chains and caused prices to rise sharply.
Arman Khaleghi, President of the Iran Chamber of Commerce, Industries, and Mines, says the economy is under multiple simultaneous pressures. According to Khaleghi, the removal of preferential exchange rates pushed up prices of basic goods; protests at the beginning of the year disrupted market order; and the subsequent war further increased economic pressure.
Khaleghi also notes that annual wage and energy price hikes took effect at the start of the new Persian year, and the naval blockade has strained import and export chains. He explains that the impact of the war is not limited to military shocks; the rush to stockpile basic goods has rapidly increased demand, which in turn has driven prices even higher.
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