Iranians Turn to Credit for Groceries as 80% Inflation and War Crush Purchasing Power
Updated
Updated · Yahoo Finance · Aug 14
Iranians Turn to Credit for Groceries as 80% Inflation and War Crush Purchasing Power
3 articles · Updated · Yahoo Finance · Aug 14
Summary
Interest-free credit and buy-now-pay-later plans are spreading from furniture to food across Tehran, as households increasingly finance basic groceries after nearly six months of war.
Almost 80% inflation and a rial down nearly 30% this year have gutted purchasing power, while U.S.-Israeli strikes and a U.S. naval blockade on Iran’s busiest ports have deepened shortages and costs.
About 70% of Iranians are already vulnerable or poor, one economist said, making installment purchases of everyday necessities a sign that the crisis has moved from macroeconomic stress into daily survival.
The squeeze poses a political risk for Tehran: a rial slump had already triggered nationwide protests before the strikes, and the UN says 27 people linked to the unrest have been executed since March.