Iran raises prices of food staples, stirring panic and anger

Iran raises prices of food staples, stirring panic and anger

AP NEWS-May 11th 2022

Isable Debre

DUBAI, United Arab Emirates (AP) — Iran abruptly raised prices as much as 300% for a variety of staples such as cooking oil, chicken, eggs and milk on Thursday. Scores of alarmed Iranians waited in long lines to snatch up bundles of food and emptied supermarket shelves across the country in the hours before the price hike took effect.

Panicked shoppers raided stores and stuffed basic goods into large plastic bags, according to footage shared widely on social media. Lines in Tehran snaked out of grocery stores late Wednesday. On Thursday, Iran’s currency dropped to a low of 300,000 rial to the dollar.

Internet disruptions were reported across Iran as the government braced for possible unrest, advocacy group NetBlocks.org said. Protests appeared to spring up in the remote and impoverished south, according to videos shared online. The Associated Press could not verify their authenticity but the footage corresponded to reported events.

The scenes revealed not only deep anxiety gripping the country and frustration with Iran’s leaders, but also underscored the staggering economic and political challenges facing them.

Food prices across the Middle East have surged due to global supply chain snarls and Russia’s invasion of Ukraine, which both export many essentials. Iran imports half of its cooking oil from Ukraine, where fighting has kept many farmers from the fields.

Although Iran produces roughly half of its own wheat, it imports much of the rest from Russia. The war has added to inflationary pressures. Smuggling of Iran’s highly subsidized bread into neighboring Iraq and Afghanistan has spiked as hunger spreads across the region.

Drought is already ravaging Iran’s economy. Western sanctions over Iran’s nuclear deal have caused additional difficulties. Inflation has soared to nearly 40%, the highest level since 1994. Youth unemployment also remains high. Some 30% of Iranian households are below the poverty line, reports Iran’s Statistics Center.

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