The narrative of Iranian residents about the increase in the prices of goods and services makes another part of the “achievements” of the US and Israeli military attack on Iran clearer: “We had no hope of your good, so do not harm us.”
In the days when news about negotiations between Iran and the United States has replaced news of Israeli and American attacks on Iran, the wounds of war on the bodies and minds of the people become more visible: surging inflation, widespread unemployment, the risk of homelessness, and a wounded psyche.
The few Iranian residents who have access to the internet, at great expense, say that a post-war catastrophe is creeping under the skin of the city. Golshan, a resident of Tehran, wrote on the social network X: “Inflation cannot be understood with official statistics.”
According to him, the cost of “a minimal life, just to survive and without any future or savings, is about 35 to 40 million Tomans per month. This number speaks of survival. This is the painful reality of today’s Iran… To survive, you have to eliminate life! The boundaries of life are becoming smaller and smaller than the human body, and death is squeezing the throat of life.”
The Donyayeh Eqtesad newspaper reported on April 19, 2021, that the cost of providing a standard food basket for a family of four in April was 25 million and 159 thousand tomans. Accordingly, basic food items alone account for 85 percent of a household’s minimum income.
According to the resolution of the Supreme Labor Council, the minimum wage for a married worker with two children – a family of four – is 25 million and 575 thousand Tomans. Assuming the continuation of the cash and cash income scheme, the total cash and cash income of a minimum wage worker with two children is less than 30 million Tomans. This amount of income is possible if the minimum wage resolution is announced.
According to the newspaper, which is considered the unofficial platform of the neoliberal movement in Iran, “an examination of online retail data shows an average growth of 68 percent in food prices in the last 4 months and the cost of the food basket reaching 85 percent of the minimum income.”
In its report on the average price of goods and services, the Statistical Center of Iran announced that the food inflation rate was 112, which is a new record in the last 15 years. This figure is even higher than the inflation rate in 1401 when the government at the time eliminated the 4,200-toman currency for essential goods.
Forced reduction in consumption
In another report titled “Consumers Have Become Conservative,” Donya Eqtesad quoted food, clothing, toy, and cafe sellers in Tehran as saying that demand has dropped significantly. A food supermarket seller in Tehran said:
In recent months, demand for chocolate, biscuits, coffee and foreign drinks has fallen sharply. This decline in demand has intensified in recent weeks. At the same time, demand for cold factory sandwiches, ready-made Iranian coffee, tea with foreign brands and even products such as chips and puffs has also decreased.
In this regard, the situation was described as follows, as quoted by a chain store salesperson in Tehran: “Over the past few weeks, the demand for some semi-prepared food products has decreased. Of course, this issue has not had a significant impact on the food industry’s production process.”
He explained the reason for this situation as “the limited income sources of many families in recent months,” and said that in these circumstances, “many families have redefined their consumption priorities. In addition, our daily customers have been limited. It seems that people prefer to shop at longer intervals so that it is easier for them to manage their purchases.”
On April 14, 1405, Shargh newspaper published a report in its “War Breaks Out on the Food Market” about the increase in food prices, which were reported by Iranian residents who complained about the rapid increase in prices. According to a resident of Tehran, “A one-kilogram package of minced meat, which cost 800,000 tomans before the war, has now reached 1,110,000 tomans. Of course, before the elimination of the preferential currency, the price of two packages of minced meat reached about 1,000,000 tomans, and the price of an 800-gram frozen chicken has reached 800,000 tomans; before the war, the price of the same product was 500,000 tomans.”
Another Tehran resident said in an interview with Shargh newspaper: “The price of one kilogram of Hashemi rice increased to 500,000 tomans during the war. Before the war, the price of one kilogram of Hashemi rice was about 400,000 tomans, and of course, it must be said that the quality of the rice has also declined and is usually mixed with Pakistani or Indian rice.”
Also, according to another person who spoke to this newspaper’s reporter, “Oil has been scarce in the market for a long time, and each two-liter can of liquid oil costs about 500,000 tomans.”
Another Tehran resident said that “the price of three bananas is 400,000 tomans, and the price of three simple household detergents has become one million tomans.”
Of course, the price increase was not limited to food. According to a citizen who commutes between Tehran and Qazvin, transportation costs have also increased. He said: “The intercity taxi fare from Qazvin to Tehran has become 360,000 tomans, while before the war the fare for this route was 200,000 tomans.”
Medicines have become scarce and expensive: a threat to the lives of certain patients
Most importantly, which could threaten the lives of certain patients, is the price hike coupled with drug shortages. At least two pharmaceutical factories and research institutes related to the pharmaceutical and health industries have been confirmed to have been attacked by the US and Israel during the 40-day war.
The head of the Medical Equipment Department of the Food and Drug Administration said on April 13, 1405 that the United States and Israel bombed the companies “Pars Medical Equipment Technologists, Tajhiz Gostar Salamat, Noavaran Teb Iranian, Pikmed Factory, Soha Company, Shalchilar Company, and Sa Iran Factory,” which were active in the field of medical equipment and treatment.
The Hamshahri newspaper also reported on April 19, 2021, quoting the CEO of Tofighdaro Company, that the complete reconstruction of the complex will take up to three years. He, however, claimed that the factory’s production line has not been stopped.
The spokesman for the Food and Drug Administration of the Iranian Ministry of Health announced the number of pharmaceutical and medical equipment companies targeted by Israeli and American attacks as “30 units.” However, on April 13, 1405, he denied the shortage of medicine in Iran and described reports of a shortage of insulin in the pharmaceutical market as “incorrect” and “demand for foreign production.”
Bahman Sabour, a member of the Pharmacists Association, said on February 19 that due to the sanctions and the war, “it is not possible to import all types of pharmaceutical brands from abroad, but domestically produced or generic drugs are available, and most reports of shortages are related to foreign brands.”
According to him, the impact of the attack on pharmaceutical companies “will be clear in six months.”
In connection with the shortage or increase in drug prices, the newspaper “Hemutan” on April 17, 1405, in its report “Drug Crisis in Iran; From Shortage and High Prices to Pressure on Patients and Producers,” confirmed the increase in drug prices:
Some of the most commonly used and regular medications, which were previously offered at relatively constant prices, have now seen significant price increases. Pharmaceutical companies have confirmed a 200-400 percent increase in the price of some medications. Pharmacies have also reported a 50 percent increase in the price of medications, including asthma sprays.
According to the report, “Medicines that were previously available at a price of around 100,000 to 200,000 tomans have now reached around 1 million tomans. In other cases, the price of some items has increased from around 400,000 tomans to 3 million tomans, which means a nearly seven-fold increase.”
The price of vital and specialized medicines, especially those for cancer patients and certain types of patients, has increased severalfold, and “medicines that were previously available at a certain and predictable cost level have now become a commodity that is almost beyond the financial reach of many patients.”
The report quoted several Iranian residents as saying that some medicines had become scarce. The mother of a leukemia patient, who was unable to obtain the necessary medicine after searching several pharmacies, was forced to “end up buying the medicine on the black market at a price that was several times higher.”
In another story, a diabetic patient said that his insulin quota has been reduced and he has been forced to manage his intake, which has directly affected the control of his disease. The shortage of the drug has caused doctors to warn about the lives of thalassemia patients. Heart patients have also “cut off part of their prescriptions” due to the rising prices and shortage of domestic samples.
The Iranian government had planned to eliminate foreign exchange for importing medicine before the war. In 1404, the government refused to allocate the expected foreign exchange for importing medicine, which would further exacerbate the shortage of medicine. According to the government, a total of three billion dollars in credit has been planned for importing medicine, medical equipment, and powdered milk in 1405.
Akbar Abdullahi Asl, Director General of Medicines of the Food and Drug Administration, announced on April 14, 2021, that the share of medicines and raw materials from the projected preferential currency will be $1.5 billion. He estimated the pharmaceutical industry’s need for imports at around $2.2 billion and said that half of the foreign exchange needed for imports must be provided from the open market. Providing foreign exchange at a free rate, which is three to four times the preferential currency, will increase the price of medicines.
Struggle to survive
It is still unclear whether the ceasefire will hold or whether a new wave of military attacks will be launched to wreak further destruction. The financial toll of the war has not been officially announced, but a large portion of industrial jobs in the steel, petrochemical and related industries have already been destroyed.
Declining demand and rising production costs have led to more layoffs. In one case, the executive secretary of the Fars Provincial Workers’ House said on the eve of Labor Week: “Factories that previously employed 2,000 people have now reduced their workforce to about 1,000 or less without recruiting replacement workers.”
It is estimated that at least 300,000 to 500,000 gig economy workers have lost their jobs due to the internet shutdown. Also, with the demand for entertainment and restaurant services decreasing, workers in this sector have also become unemployed. According to expert estimates, about two million workers may be unemployed due to the war. The government has approved a support package to deal with this situation. However, workers are concerned that temporary unemployment will turn into permanent. ILNA quoted a worker at a petrochemical complex in southern Iran as saying: “About 2,200 workers are in an uncertain situation outside the complex. They have been paid their salaries on account, but after that nothing is clear.”
“They say production has stopped and they want to send workers to unemployment insurance. Maybe part of this is true, but our fear is that this will become a permanent trend,” the worker said.
Unemployment, inflation, and economic stagnation are the most obvious consequences of the 40-day war. The passage of time will reveal even more harmful consequences of the war that was falsely advertised as “helping the people.” https://www.iran-tribune.com/n/ir/226