On April 29, the US dollar’s exchange rate soared to over 1.8 million rials in Iran. In Tehran, prices hit new heights: a fried egg cost one million rials, and a hamburger went for five million rials. With a minimum wage of just above 200 million rials per month, these prices are shocking for most residents.
In a recent state TV segment, anchor Elmira Sharifi posed a bold question to President Masoud Pezeshkian: “What is going on in this country?” This direct approach is rare in Iranian media, highlighting just how desperate the situation has become. Many Iranians are struggling to afford basic necessities like rice, sugar, and medicine.
Pezeshkian has faced increasing criticism since taking office in 2024. His administration is dealing with a significant budget deficit, soaring inflation, high unemployment, and severe shortages. These issues have only worsened due to ongoing conflicts with the US and Israel, which have disrupted supply chains and accelerated shortages.
To combat economic hardship, the government has proposed a plan allowing supermarkets to offer credit to customers who can’t pay cash. Households receiving cash subsidies may buy goods on credit, with automatic repayment using future benefits. While this seems like an attempt to help, the system has clear flaws: it relies on the willingness of stores to participate, and the monthly subsidy, worth less than seven dollars per person, barely covers basic needs.
Historically, during the war with Iraq in the 1980s, Iran employed a similar system. Back then, cooperatives enabled service members to buy goods on credit, often with far more effective results than today’s strategies.
A recent article from Ettela’at, one of Iran’s oldest newspapers, cautioned about the uncertain future of the ongoing war. It emphasized the need for the government to prioritize citizens’ livelihoods as prices for essential goods continue to rise. Issues like unemployment and a stagnant labor market compound the crisis created by war-related damages in production and supply chains.
The current situation is further complicated by widespread internet shutdowns, hindering access to information and communication. Ettela’at warned that the government may soon need to implement special economic programs to address wartime conditions and must act urgently.
Analysts express concern over whether officials can respond quickly and effectively enough to prevent an even deeper crisis. As prices soar and basic needs remain unmet, the struggle for many Iranians becomes more challenging each day.
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