Even state media sounds alarm as Iran’s economy sinks

Key Points:

• On April 29, the US dollar exchange rate in Iran surged above 1.8 million rials, while basic food prices in Tehran, such as a fried egg costing one million rials and a hamburger five million, have become increasingly unaffordable amid a minimum wage of just over 200 million rials per month.
• State TV anchor Elmira Sharifi publicly criticized the government for widespread shortages and inflation, highlighting that many Iranians struggle to afford essentials like rice, sugar, cooking oil, dairy, and medicine, reflecting growing public frustration and demands for accountability.
• President Masoud Pezeshkian's administration faces worsening economic challenges including a vast budget deficit, soaring inflation, high unemployment, and supply chain disruptions exacerbated by ongoing conflicts with the US and Israel.
• The government introduced a plan allowing households receiving cash subsidies to buy goods on credit at participating supermarkets, with repayments deducted from future subsidies; however, the plan is limited in scope, short repayment terms, and the subsidies' low value reduce its effectiveness.
• Iran’s media warn of a severe economic crisis worsened by war, unemployment, and infrastructure collapse, urging urgent, comprehensive wartime economic programs to support nearly 90 million citizens amid uncertain conflict outcomes and ongoing internet shutdowns.