Tehran shopkeepers report collapsing sales as war pushes up prices

Right · 1Shopkeepers in a Tehran bazaar say sales have fallen sharply because prices have soared since the war began, leaving some businesses fighting for survival. 1 Mixed · 2The conflict began in February with US-Israeli attacks and an American blockade of Iran's ports, adding strain to an economy already battered by years of sanctions. 2 1 Mixed · 2According to official figures, inflation reached nearly 90 percent year-on-year in September, and food prices have more than doubled since last year; erratic currency movements have also pushed up everyday costs. 2 1

Right · 1Official figures also show Iran's GDP contracted 10.1 percent year-on-year between late March and late June. The rial traded at around 2.7 million to the dollar on the unofficial market in the past week, against about 1.7 million before the war, and the minimum monthly wage has fallen from around $120 a year ago to $65. 1 Right · 1Nasir, 61, a fruit and nut seller at the Tajrish bazaar in the north of the capital, said customers who once bought two to five kilograms now buy one or half a kilogram, and he called on authorities to stabilise the dollar exchange rate. 1 Right · 1Ali Nowruzi, 36, who runs a sportswear shop, said manufacturers are going bankrupt and laying off staff, that he orders only a few display items because his warehouse is empty, and that rising rent and utility bills add to the pressure. 1

Right · 1Car mechanic Mojtaba Rezaei, 57, said his customers have dropped to a tenth of previous levels because goods cost two or three times as much, while Azadeh, 45 and out of work, said a kitchen cloth that cost 22 cents now costs $1.10. 1 Right · 1Iran's economy minister has rejected predictions of an imminent economic collapse, accusing the country's foes of trying to fuel public anxiety and drive up exchange rates. 1