Iran inflation nears 90% as shopkeepers struggle

Iranian shopkeepers say customers are buying less as war-related pressure, soaring prices and currency swings erode purchasing power, with official figures showing inflation at nearly 90 percent year-on-year in September.

At Tehran's Tajrish bazaar, fruit and nut seller Nasir said customers who once bought several kilograms now often buy one kilogram or half a kilogram. He urged authorities to stabilise the dollar exchange rate so businesses could plan ahead.

Iran's economy had already been weakened by years of sanctions. The conflict that began in February with US-Israeli attacks and an American blockade of Iranian ports has added pressure on daily life. Food prices have more than doubled since last year, according to the figures cited.

Official figures showed GDP contracted 10.1 percent year-on-year between late March and late June. The rial traded at about 2.7 million to the dollar on the unofficial market in the past week, compared with about 1.7 million before the war. The minimum monthly wage fell from about $120 a year ago to $65.

Sportswear shop owner Ali Nowruzi said weak demand, rising rent and utility bills had left his business with no plan for the future. A 45-year-old shopper, Azadeh, said she had stopped buying some fruits and could no longer afford holidays. Mechanic Mojtaba Rezaei said his customers had fallen to a tenth of their previous level.

Iran's economy minister rejected predictions of an imminent economic collapse, accusing Iran's foes of trying to fuel public anxiety and drive up exchange rates.