Inflation And Currency Collapse Hit Households In War-Hit Iran As Prices Rise Over 100%

Skyrocketing inflation and a collapsing currency have hit households in Iran as the war and U.S. and Israeli attacks continue, with an Iranian labor and social affairs ministry official saying the war has put a million people out of work.

“Tehran, Iran – Skyrocketing inflation is jeopardising food security among households in conflict-hit Iran, new figures show, as diplomatic efforts to end the war launched by the United States and Israel intensify”

Al Jazeera

Fortune reported that prices for some items rose by more than 100% in less than a week, and said Iran’s currency sank to a fresh all-time low against the U.S. dollar of 1.8 million rial on Wednesday.

Al Jazeera

Al Jazeera said the Statistical Center of Iran (SCI) reported that Farvardin, the first month of the Persian calendar year that ended on April 20, had an inflation rate of 73.5 percent compared to the same month of the previous year.

Al Jazeera also reported that the SCI said inflation was five percent higher in Farvardin compared to the previous month, while the Central Bank of Iran reported a slightly lower inflation rate of 67 percent for Farvardin compared to a year earlier and a seven percent monthly increase.

Al Jazeera reported that food inflation is much higher than headline inflation, forcing people to pay an expanding share of shrinking salaries on basic items.

The SCI data cited by Al Jazeera showed a 115 percent food inflation rate for the first month of the year, with solid vegetable oil up 375 percent, liquid cooking oil up 308 percent, imported rice up 209 percent, Iranian rice up 173 percent, and chicken up 191 percent.

Anadolu Agency

A Tehran resident told Al Jazeera, “And it’s not just me – I think most people in society right now can’t afford many of the things they want,” describing how she could no longer afford items she could just last month.

Al Jazeera also quoted Majid, who works at a liver kebab shop in the capital, saying, “The price of liver has doubled. When we ask suppliers why, they either say there’s a shortage or that sheep are being exported. Honestly, there’s no real oversight,” as the eatery increased prices three times in recent months.

As diplomatic efforts to end the war launched by the United States and Israel intensify, Al Jazeera reported that President Masoud Pezeshkian told officials on Sunday, “The people must realistically understand the conditions and restrictions of the country,” and said difficulties could be solved through “people’s cooperation and reliance on national cohesion.”

Al Jazeera said Pezeshkian’s comments came a day after the SCI’s inflation figures, and noted that the government response has included offering subsidies and coupons while trying to crack down on hoarding perceived to be contributing to price hikes.

Fortune reported that Iran’s parliament speaker and top negotiator, Mohammad Bagher Ghalibaf, warned Wednesday that the U.S. blockade represented a “new phase” of war, adding that “The enemy has pinned great hope on economic pressure.”

Al Jazeera reported that state media said Tehran had sent an official response to a text for an agreement earlier proposed by the U.S. through mediator Pakistan, and quoted Pezeshkian saying, “If there is talk of negotiations, it does not mean surrender.”