The collapse of the rial against the backdrop of the war and economic sanctions is sharply reducing the purchasing power of the population. According to financial observers, the average monthly salary in the country has fallen from the equivalent of around 120 euros to approximately 70 euros since the beginning of the year.
The devaluation is making imports of consumer goods and raw materials particularly expensive and further increasing domestic price pressures. Residents of Tehran told DPA that food prices have risen significantly over the past six months. The price of a loaf of bread has doubled from 250,000 to 500,000 rials, and a kilogram of rice now costs 5.5 million rials compared to 3.5 million earlier. Meat has become unaffordable for many households.
As early as the end of August, annual inflation in Iran reached 66 percent, and the country's foreign trade shrank by a third due to US sanctions and a maritime blockade. At the time, the Iranian government listed curbing inflation, managing markets and reducing dependence on the US dollar among its main economic priorities.
Washington responded to Iran's closure of the Strait of Hormuz by blocking Iranian seaports to increase pressure on the country. As a result, trade in Iranian oil has almost completely ceased, DPA reports.
The United States has also imposed sanctions on Tehran's supporters, including banks and airlines. In August, Washington announced the sanctions campaign “Operation Economic Pariah,” targeting key revenue channels and international ties for Iran, including digital assets, technology, gold, aviation and shipping. The campaign also includes secondary sanctions against countries and companies that continue to trade with Tehran.
Source: www.bta.bg