Iran Snapshot: The Economy --- "How Am I Going to Live Like This?" (Mostafavi)

Ramin Mostafavi reports from Tehran for Reuters:

Marjan Hamidi turned away from the butcher's shop in a crowded area of Tehran's sprawling bazaar. Her quest to buy reasonably priced groceries was not going well.

"Everything's become so expensive in the past few weeks, she said with disappointment. "But my husband's income stays the same. How am I going to live like this?"

Tightening international sanctions against Iran over its disputed nuclear program, combined with rampant inflation, have drastically restricted the ability of working-class Iranians to feed themselves and their families.

Uncertainty and financial hardship form the backdrop to a parliamentary election on March 2. The official inflation rate stands at 21 percent but critics of President Mahmoud Ahmadinejad and his handling of the economy say such figures are falsified and real inflation is around 50 percent.

"My purchasing power declines almost every day and the prices of basic foods are soaring overnight," said the 52-year-old mother in the vibrant, bustling covered market.

"My bank savings are shrinking. I can't afford the unbearable cost of living by only relying on my husband's pension," Hamidi said, as she pointed out the price of meat.

At $25 per kilo, it is increasingly beyond the reach of many Iranians. Three months ago it was $10 cheaper.

Maryam Bakhshian had come to the bazaar to buy fabric. Like most, her thoughts were occupied with the soaring prices.

"It is ironic," she said with a smile that did little to hide her frustration. "While I can hardly meet my daily needs, some people are stockpiling goods, fearing a possible shortage in the future."

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