1/28/2012

Sanctions Biting On Ordinary Iranians


"The cost of foreign products, whose value is linked to the dollar, has risen by 20 and 50 percent in recent months," says Ali, who runs a grocery in north Tehran.
"On the other hand, the government closely controls the price of products made in Iran," which represent 90 percent of consumed products. "Dairy products for example have not risen by more than five to 10 percent."
But with inflation officially now pegged at around 21 percent, the real cost of numerous consumer goods is significantly higher, aggravated by the weaker rial.
Iran's long overvalued currency, which the central bank allowed to weaken in recent months to shore up its foreign currency reserves, has almost halved in value over the past year.
The rial tumbled in black market trading to a new record low against the dollar, news agencies said earlier this week, with the unofficial rate in central Tehran at around 20,500 for one greenback.
All imports, notably electronic equipment such as computers, mobile phones, televisions and fridges, have shot up in price by more than 50 percent. More here.

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