Iranians cut essentials as war and sanctions drive inflation

According to the report, the conflict was triggered by US and Israeli strikes on Iran on Feb. 28 and followed by Tehran's closure of the Strait of Hormuz and a US blockade of Iranian ports in the Persian Gulf, disrupting oil exports, trade and government revenues. The report said the turmoil compounded the impact of decades of sanctions and economic mismanagement. Annual inflation accelerated to 73.6%, rents rose 32.8%, housing, utilities and fuel costs were up nearly 38%, and the official unemployment rate reached 9.1% in the spring, with nearly a quarter of 15- to 24-year-olds out of work. The rial lost more than half its value over the past year, while official estimates put the minimum monthly cost of living for a three-person working-class family at around $336, more than three times the average monthly wage of roughly $92 at the free-market exchange rate. Economy Minister Ali Madanizadeh apologized for cost-of-living pressures, state media reported, and Central Bank Governor Abdolnasser Hemmati said in mid-October that US claims Iran's economy was collapsing were “an illusion.”