According to media reports, the pace of price increases in Iran has intensified in recent weeks, and alongside rising costs, people are also witnessing shortages of essential goods in the market.
In this regard, the state-run Hamshahri newspaper reported on Sunday, January 12, that dairy products have once again experienced a price hike in less than three months. The report emphasized that in recent days, dairy products have been supplied to stores and dairies at new prices. While the price increase in January is not as steep as in October, the repeated price hike within just three months is “highly unusual, as dairy prices previously changed on an annual basis.”
Ham-Mihan newspaper also reported on January 12 that field studies of markets indicate that some essential goods in the country have faced shortages and price increases in recent days.
According to Ham-Mihan, “The rise in the value of the dollar can have a multiple effect. Middlemen may exploit the situation by hoarding goods and engaging in price gouging to maximize their profits.”
Unprecedented Inflation And Rising Prices In Iran’s Food Market
The report also noted that rising prices of essential goods could lead to a decline in demand, with the impact being even more severe among low-income groups.
The newspaper highlighted a concern long raised by labor activists and health experts.
Ham-Mihan wrote in its report: “Studies show that the consumption of essential goods by low-income and even middle-income groups has declined compared to last year, and with rising prices, this decline will become even more noticeable.”
This issue has raised concerns, as even according to official statistics—which many experts believe are far from reality—a significant portion of the population consumes far less than the daily required 2,100 kilocalories.
The Ham-Mihan report also touched on other aspects of the crisis in the supply and distribution of essential goods, stating: “The increase in the preferential exchange rate could eliminate some domestic producers, increasing the risk of their bankruptcy.”
The report’s author examined the current economic crisis from a different perspective, arguing that the rising value of the dollar fuels inflationary expectations among the public. When people anticipate price increases in the near future, they tend to buy and stockpile more goods, which in turn exacerbates price hikes and even leads to shortages of certain items.
The point raised by the newspaper is visibly reflected in Iran’s market conditions today. For a long time, cooking oil has experienced both official price increases and rationed distribution. Moreover, the latest official reports indicate that cooking oil imports have decreased by more than 30%, despite the fact that over 90% of the country’s cooking oil supply relies on imports.
