Surge in Prices of Traditional Yalda Night Items; People Turn to 'Single' Purchases

Field reports indicate a surge in the prices of traditional items for this year's Yalda Night celebrations in Iran. An analysis by Khabar Online shows that the prices of fruits and nuts have increased ahead of Yalda Night, with the cost of basic items for a table for four exceeding one million and five hundred thousand tomans. It is customary for Iranian Yalda tables to be adorned with nuts, as well as pomegranates, watermelons, oranges, and in some cases, persimmons. Sweets and chocolates are also part of the Yalda table. These items have seen price increases of several hundred times due to a new wave of inflation that began in May 2022. Despite claims by the head of the Fruit Sellers Union that there is no shortage in the fruit market, business owners report a decrease in purchasing volume. Shopkeepers say the method of purchasing has shifted from buying by the kilogram to buying individually. According to some sellers, the volume of fruit and sweet purchases on Wednesday, December 20, just one day before Yalda Night, has decreased compared to previous years. Families are facing a 100% increase in the price of pomegranates and a 300% increase in the price of oranges compared to last year for decorating their Yalda tables. The Mehr News Agency reported that the nut market has also seen price increases ranging from a minimum of 298,000 tomans to a maximum of 1,070,000 tomans. Ahmad Alavi, an economist residing in Sweden, noted in an interview with Voice of America that these price hikes are fundamentally a consequence of 'uncontrolled' and 'institutionalized' inflation in Iran's economy. He added that the consumer items for Yalda have not suddenly become expensive but have historical roots that have been established over the past twenty years or more. Government officials also state that inflation in Iran is institutionalized, meaning it cannot be resolved with short-term and minor tools. The reasons include government budget deficits, structural issues, as well as corruption and inefficiency. This economic expert also identified market factors as one of the short-term reasons for price surges, stating that prices rise suddenly during Yalda, similar to the past, but may be more pronounced this time. This could be related to seasonal demand increases and market factors, indicating that the Iranian market for goods and services is neither transparent nor competitive, and its players are not accountable. As the prices of Yalda items continue to rise, heads of the unions for fruit, nuts, and confectionery have reported an abundance of items and a prohibition on raising prices. Alavi commented on the government's failure to stabilize prices, stating that the government attempts to control prices through short-term measures like price suppression or crackdowns, but these actions have often proven ineffective. In many cases, control has slipped from the government's hands; this is also true in this case. He emphasized that the government has failed to effectively implement these controls, describing inflation as general, institutionalized, uncontrolled, and structural, attributing it to structural imbalances, budget imbalances, and increased liquidity. Regarding the future of living expenses inflation for households, Alavi stated that as the structure of the economy has effectively escaped the management of the government, which is inefficient and corrupt, it cannot implement effective management, and as long as this policy-making, structure, and these inflationary factors exist, this situation will continue. Officials claim that everything is normal; citizens report on rising prices and the lack of gasoline at stations. Media reports ahead of the longest night of the year; a 'Yalda' of regret and inflation. Criticism of the government's 'fabricated statistics'; a newspaper close to the IRGC states: elections are approaching, pay attention to livelihoods. Corruption in the Islamic Republic; discovery of organized smuggling of livestock feed. A union official: the Ministry of Agriculture should be held accountable for the rise in chicken prices.