Home World The purchasing power of Iranians is eroding due to accelerating inflation

The purchasing power of Iranians is eroding due to accelerating inflation

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Ali is busy cutting the sheep carcass he has just received at his butcher’s shop in southern Tehran. in preparation to sell it to customers who, like him, complain about the decline in their purchasing power with a sharp increase in the registered inflation rate in Iran is considered by experts to be the sharpest in recent decades.

“Its sales have dropped dramatically, almost in half,” Ali, 50, told AFP. “People’s purchasing power has dropped dramatically.”

“What can I say?” he adds on the sidewalk where some customers in the Moloy business district are waiting for him. I’m a butcher, but sometimes I don’t eat meat once a week, everything has gone up in price. ”

Iran is suffering from a severe economic and housing crisis mainly due to the sanctions Washington reset on Tehran following the decision by former US President Donald Trump to unilaterally withdraw his country from the Iran nuclear program agreement in 2018.

The crisis was reflected in various aspects of life, such as the decline in the local currency and the inflation rate that has crossed the 40 percent mark per year since 2018, according to experts.

And economic analyst Saeed Laylaz says that maintaining this percentage “for four consecutive years is unprecedented and the worst since the Second World War.”

Inflation has accelerated further for weeks after the government of President Ibrahim Raisi announced changes to the subsidy system and raised the prices of basic necessities such as flour, meat, eggs and cooking oil in the second half of May.

Hundreds of people got out in square in the past few weeks in several cities to reject the rise in prices, and to these protest movements have been added others that have been carried out for months by various professional sectors, to ask for better wages and pensions to take into account inflation.

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