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US sanctions campaign leaves Iran facing surging food and fuel inflation
Vegetable oil prices rose 383% year over year, while year-on-year inflation hit 84.4% in August, according to the US dollar’s record and Iran’s statistical data.
The Guardian reports that the US’s new sanctions campaign, branded Operation Economic Outcast, arrives as Iran is already dealing with collapsing buying power driven by runaway food and fuel inflation and rapid currency depreciation tied to a shortage of foreign exchange reserves.
The outlet says food prices have spiked sharply, with vegetable oil up 383% from a year earlier, eggs up 294%, chicken up 177%, and red meat up 148%.
It also reports that the US dollar hit roughly 2 million rials on Iran’s open market on 23 August, a new record, and that Iran’s statistical center later put August year-on-year inflation at 84.4%, with a rolling annual average around 65%.
As households scale back purchases and basic goods become less affordable, the story adds that fuel shortages are causing long queues in Tehran and Mashhad, with many petrol stations closed and some lines blocking streets.