Thirty-three years after the first economic sanctions were introduced against Iran, the Islamic Republic is feeling the negative effects more than ever. Ordinary Iranians are reeling from soaring prices for household goods. The official inflation rate is 23%, but most analysts believe it is much higher.
Foreign currency shops in Tehran remained shuttered or failed to display prices today while hundreds of Iranian riot police remained in the downtown area a day after protests over the tumbling national currency. Police units were visible around Ferdowsi and Manouchehri
Iran’s freefalling currency is turning meat into a luxury, sparking overnight price surges and spurring shoppers to stockpile goods. “Most of my customers just look at products behind the window and pass,” said Behrouz Madani, 42, who owns a butcher shop in northwest Tehran
Iran is working to shrink and eventually eliminate the free market in its tumbling rial currency, the economy minister was quoted as saying amid signs that foreign exchange trade outside a government-sanctioned centre was drying up.
The U.S. and Europe are implementing the toughest sanctions yet on Iran to stop its leaders from developing nuclear weapons. The measures have succeeded in making life harder for regular Iranians; according to Iranian news sources, milk prices are rising daily, and citizens boycotted bakeries and grocery stores in protest in June.
Iran’s inflation rate hit 22.9 percent in the fourth calendar month of the Iranian year , which ended on July 21, showing 0.5 percent rise compared to the previous month, the IRNA News Agency reported.
Iran’s parliament has warned President Mahmoud Ahmadinejad that resentment is building over sharp increases in the price of natural gas, which has risen at least 10-fold on average in recent weeks, and that public protests could follow.
Iran plans to slash four zeros from its national currency in “one to two years”, seeking parity between its rial and the US dollar, Central Bank Governor Mahmoud Bahmani has said.
Lebanon inflation slowed for the first time in four months as price growth for food and clothing eased.