Iran's rial rebounds and Tehran stocks soar, but everyday prices still bite hard for households
Al Jazeera Economy reports the Iranian rial has rallied against the dollar and Tehran's stock exchange has surged 12% after the framework agreement with Washington. However, supermarket prices for staple food and medicines in the capital have not eased significantly in the short term. Iranian economists say the macro improvement will take weeks to feed through to consumer baskets.
Al Jazeera Economy reports the Iranian rial gained 9% against the dollar last week, trading on the parallel market around 41,000 to the greenback. Tehran's TEDPIX index rose 12% over three sessions, led by petrochemical, cement and telecom names. Investors are betting on the partial sanctions relief expanding export capacity.
But Al Jazeera's Tehran correspondent reports that staple-food prices in supermarkets in the capital's Tajrish district have not moved, while imported medicines remain expensive because foreign-exchange bottlenecks persist. Importers say current stock was purchased at the old exchange rate, with the lower cost only feeding through to consumer prices from mid-July.
Iran's Central Bank Governor Mohammad-Reza Farzin called the equity rebound "the markets pricing in a positive signal in advance" and said inflation could fall to 28% by year-end. Independent economist Hossein Raghfar told Al Jazeera that "financial improvement reaching ordinary households depends on structural reforms".
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