The rising cost of food and other essential goods is pressuring Iranians as the threat of a US attack looms

TEHRAN, Iran (AP) — Every day Iranians go to stores and find prices rising. Some are posting photos on social media of the shrinking contents of their shopping carts as they struggle to buy enough essential items for their families. The rising cost of living represents an additional burden as Iranians prepare for a possible war with the United States and grapple with the effects of protests that swept the country last month.

“Everyone is under pressure: merchants, civil servants, workers,” said Ibrahim Momeni, a 52-year-old retired government employee. “The weakest class of people are being crushed.”

The Iranian economy has been suffering for years due to international sanctions and mismanagement.

It saw some relief under the 2015 nuclear deal that lifted many sanctions, until US President Donald Trump unilaterally withdrew from the agreement in 2018. Since returning to office more than a year ago, Trump has revived his “maximum pressure” campaign, expanding sanctions targeting Iran’s financial sector and energy exports. On Wednesday, his administration imposed new sanctions on 30 people and companies accused of enabling Iran’s ballistic missile and drone production and illicit oil sales.

Read more: A timeline of tensions over Iran’s nuclear program as talks with the United States approach

The pressure has accelerated the decline in the value of Iran’s currency, the rial. In 2015, when the nuclear agreement was signed, the riyal was trading at about 32,000 to the dollar. In late December, it had reached $1.3 million. On Wednesday, the currency reached a new low of 1.65 million riyals to the dollar – exacerbated by fears of a US attack.

The lower classes are in desperate need of relief as prices rise

The inflation rate exceeded 46% compared to January of last year. Economists warn that the rapid decline in the value of the riyal threatens to fuel a vicious cycle of rising prices and declining purchasing power. They expect Iran’s economy to suffer double-digit inflation – which is also plagued by high youth unemployment – for years to come.

The decline in the value of the rial was one of the reasons behind the protests that began in late December in Tehran’s main market and then spread throughout the country.

Prices of everyday goods, from groceries to toiletries, are rising dramatically.

Momeni said that he receives about 700 million riyals (about 540 dollars) per month. Just last month, the price of a kilo of red meat (2.2 pounds) rose from 13 million riyals ($10) to 22 million riyals ($17). In the same period, the price of a liter of milk (a quarter of a gallon) doubled from 520,000 riyals to 1.1 million riyals, and the price of a box of pasta rose from 340,000 riyals to 570,000 riyals.

Farhad Panahirad, a 44-year-old taxi driver, said, “Those with low incomes and fixed salaries are suffering because of the high prices.” He said that he and his wife together earn about 600 million riyals (about $460) per month.

Many people at the markets on Wednesday explained how they are trying to cope with increasing financial pressures, as they check social media every day for news about the latest prices, or go shopping at night, when the price of some products is reduced to half price to get rid of stock before it spoils.

Fearing that the United States could launch strikes at any time, Iranians are also scrambling to buy emergency supplies. This includes light bulbs, small gas ovens and tape to secure windows against explosions, said a hardware store owner in central Iran, who spoke on condition of anonymity for fear of retaliation.

Some people try to buy large quantities of beans, bread, rice, and canned goods, despite the high prices. Saeed Ibrahimi, 43, an electrician and father of two, said: “I am not happy about buying this amount of stuff, but my wife said we have to be prepared for uncertainty in the coming days.”

Even goods such as washing machines, vacuum cleaners and refrigerators have doubled their prices, according to Iranian media.

Fears of war cloud the economy

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Prices are high due to market uncertainty and high raw material costs, Tehran-based economist Farbod Molavi wrote in the independent newspaper Doona Eqtesad. He added that Iran is suffering from recession and high unemployment rates.

The unemployment rate was officially around 7.8% in October, up from 7.2% for the same period in 2024, and reaching 20% ​​among young people. About 24 million Iranians are between the ages of 15 and 34, according to official statistics.

In recognition of the suffering, the government in January began distributing payments worth 10 million riyals per month to about 70 million people, or about 75% of the population, to spend on food. It promised to increase payments if prices rose.

But the tension seems likely to continue. Trump threatened to strike Iran if it did not agree to a new agreement limiting its nuclear program. It has amassed the largest concentration of warships and aircraft in the region in decades. The two sides have held two rounds of negotiations in recent weeks, and the third round is expected to be held in Geneva on Thursday.

Panaherad, the taxi driver, said he was pessimistic that the negotiations would bring any relief to those struggling to buy food. “(Trump) is kind of bullying them. At the end of the day, he’s a superpower and he says what he wants should be done,” he said.

Momeni said, “Wherever you go now, people are talking about war. If you go to a bakery to buy bread, you will see people talking about war.” “This state of oblivion is worse than war.”