News agency reports that as of Wednesday night, snakes of Iranians could be seen in front of grocery stores across the country, with people virtually emptying shelves, buying as much food as possible before the price increase took effect.
The Iranian rial fell to another low against the dollar on Thursday.
Food prices have escaped throughout the Middle East as a result of the Russian military operation in Ukraine due to disruptions in global supply chains.
Iran procures half of its cooking oil imports from Ukraine, where some farmers are currently unable to cultivate their land due to fighting activities. Although Iran grows roughly half of its grain needs, it imports the rest from Russia. However, the war in Ukraine has further exacerbated inflationary pressures. Recently, smuggling of heavily subsidized bread in Iran has also skyrocketed: bread is being taken to neighboring Iraq and Afghanistan.
The troubles are exacerbated by the drought in the Iranian economy and the series of Western sanctions imposed on the nuclear program. Inflation is close to 40 percent, according to the U.S. news agency AP, and youth unemployment remains high. According to the Iranian Bureau of Statistics, about 30 percent of households live below the poverty line.
President Ebrahim Raiszi, who came to power last year, promised job creation, economic recovery and the lifting of sanctions, but so far no breakthrough has been achieved in the Vienna talks on reviving the nuclear deal.
The government has so far sought to alleviate the burden on the population through swift action, including monthly financial assistance. Authorities have maintained price subsidies for traditional flatbread, one of the most basic foods in the country, despite high flour stores.
Cover image: Tuul and Bruno Morandi, Getty Images
Source: Portfolio.hu – Gazdaság by www.portfolio.hu.
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