Business · Companies · 10 hrs ago

War and inflation squeeze Tehran bazaar businesses and shoppers

War and inflation squeeze Tehran bazaar businesses and shoppers

In Tehran’s Tajrish Bazaar, shopkeepers say war and high prices are cutting sales as customers buy less or leave without purchasing.

The conflict began in February with US-Israeli attacks and an American blockade of Iran’s ports, adding strain to an economy already weakened by years of sanctions.

Official figures put annual inflation at nearly 90 percent in September, while food prices have more than doubled since the previous year.

Iran’s economy contracted 10.1 percent year on year between late March and late June, according to official figures.

The rial traded at about 2.7 million to the dollar on the unofficial market in the past week, compared with about 1.7 million before the war, and the minimum monthly wage has fallen from about $120 to $65.

Sellers say weak demand, rising costs and unstable exchange rates leave businesses struggling to plan, with some manufacturers closing shops and laying off staff.

The economy minister rejects predictions of imminent collapse, but the shopkeepers quoted say they need more stability to keep their businesses going.

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What people are saying

NasirFruit and nut seller
They need to stabilise the dollar exchange rate.
via Hürriyet Daily News
Ali NowruziSportswear shop owner
We just need some stability.
via Hürriyet Daily News
Iran's economy ministerEconomy minister
Not stated
via Hürriyet Daily News