Sunday, October 2, 2022

Iranan economic crisis: Falling prices, surging inflation

Image copyright Getty Images Image caption People stand in line in Tehran for cooking oil

With the Iranian rial’s plummeting value, prices of goods have rocketed, further tightening the belts of ordinary Iranians.

As the BBC’s Ahmed Molavi witnessed last week, people have had to take action to meet these rising prices.

For example, one family had to borrow money to buy tea at their local convenience store, because they could not afford to buy expensive brand-name tea.

The fuel shortage is also affecting even the most ordinary cars, due to a boom in the trade in stolen vehicles.

The recent crisis has put pressure on the Iranian economy, with inflation hitting 49% in July.

Some Iranians, especially the middle class, are already benefiting from the clampdown on government corruption and fraud in the public service, but those hardest hit are low- and middle-income groups.

Economists are now predicting that more instability and economic pain is on the horizon.

Both President Hassan Rouhani’s government and opposition leaders have warned of the possibility of strikes and riots.

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