Tehran’s Gold Bazaar Amidst Inflation Crisis: Citizens Turn to Gold as Currency Collapses
Inflation Dynamics in Major Economies
2.1 United States: The Inflationary Surge
The US experienced inflation rates exceeding 9% in 2025, the highest in over four decades. Contributing factors include:
- Persistent supply chain disruptions
- Rising energy prices
- Wage increases and labor shortages
- Strong consumer demand fueled by stimulus measures
The Federal Reserve responded with interest rate hikes, but inflation remains stubbornly high, leading to concerns about stagflation.
2.2 Eurozone and Developed Economies
The Eurozone faced inflation rates approaching 8.5%, driven by energy dependency on Russia and Ukraine, and supply chain issues. The European Central Bank has begun tightening monetary policy, but economic growth slows.
2.3 Emerging Market and Developing Economies
Emerging markets like Turkey, Argentina, and Iran have experienced hyperinflation, currency collapses, and social unrest. Their currencies have depreciated rapidly, and inflation rates have soared, often exceeding 50% or more.
2.4 Case Study: Iran’s Economic Crisis
Iran’s economy has been severely affected by US sanctions, internal mismanagement, and regional conflicts. The Iranian rial has plummeted, with official exchange rates diverging sharply from black market rates.
September 26, 2025 | 4:07 pm
