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Iran reforms subsidies to help consumers fight high living costs

Iran plans monthly grocery credits to ease soaring inflation as protests over the currency’s collapse intensify.

January 6, 2025

Reuters

Iran reforms subsidies to help consumers fight high living costs

FILE PHOTO: Venezuelan President Nicolas Maduro shakes hands with Iranian President Masoud Pezeshkian on the sidelines of the BRICS summit in Kazan, Russia October 24, 2024. Miraflores Palace

Reuters

Iran is expected to launch a monthly stipend of 10,000,000 rials per person (around $7) in the form of non-cashable electronic credit to spend in select grocery stores, the semi-official Tasnim news agency reported on Monday (January 5).


The move comes amid protests that started in the bazaar of Tehran over the plunging value of the currency and soaring inflation, according to rights groups.


At least 25 people have been killed and more than 1000 protesters detained during the first nine days of protests, according to rights groups.


Iran's economy has been hammered by years of U.S. sanctions, but its rial has been in free fall since last year's Israeli-U.S. strikes that mainly targeted nuclear sites, where the West says Tehran has been working on nuclear arms. Iran denies this.


The Iranian rial fell further to 1,489,500 on Tuesday, representing a 4% fall since the protests started.


Protests have quickly expanded from an economic focus to broader frustrations, with some protesters chanting against the country's clerical rulers.


“The people are truly exhausted. This isn’t even about unrest or protest and so on” said Iranian citizen Ezzati. "But I sincerely ask those who are able to help, to ease the people’s pain — to treat that pain. Now is the time," he added.


Production: Melory Ghazi/Reuters

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