World
‘Red meat is a dream’: Iran inflation hits highest level since World War II
Tehran, Iran – In the popular Bastan market in the west of the Iranian capital, where the inviting smell of fresh bread and fruit mingle with the sight of colourful fabrics and clothing, the scene no longer holds its usual joy.
Passersby wander among the vendors’ stalls, carefully turning goods over only to return them to their places.
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“Daily shopping trips have turned into something resembling a reconnaissance mission to find out the new prices,” says Mashhadi Firouz, a 63-year-old retiree, is reminiscing about his youth on this street when it was bustling with life.
Firouz is standing in front of the shelves in a large grocery store, turning items over one by one, searching for the prices listed on their packaging.
“A year ago, a kilo of rice was about 1.8 million rials ($1.31), but today it has crossed the 5-million-rial ($3.63) threshold,” he tells Al Jazeera. “Likewise, a bottle of cooking oil was about 700,000 rials ($0.51) until the spring of last year, but its price has now reached more than 3 million rials ($2.18).
“My pension does not even cover a third of the household expenses.”
He continues, exasperated: “We are witnessing a terrifying expansion of poverty, and not just extreme poverty, but what can be called the poverty of retirees and employees, as fixed-income earners are living below the poverty line for the first time in decades.
“We do not only complain about the high prices, but about their speed, which leaves us no chance to catch our breath.”
‘Counting eggs one by one’
Just a few metres away, Fatima, 46, a housewife and mother of three, tells Al Jazeera that she has to make multiple trips to the market each week just to stay ahead of the price rises.
“I now go to the market three times a week instead of once, not because I need anything, but to see if there is a seller who has goods at a lower price, or a commodity that the wave of inflation has not yet caught up with.
“Red meat has become a dream, chicken has become a mere guest on our table, and I have even started counting eggs one by one.”
Hearing about prices doubling within days or weeks is no longer unusual, Fatima says. But inflation is no longer an “earthquake that strikes everyone equally”, but rather a selective epidemic that preys on the vulnerable more than others.
When the price of food rises, a poor family can lose half its income to necessities it cannot do without, while a wealthier family may barely notice.
In the wholesale market in the “Narenj” area south of Tehran, Mehran, 71, a grocery seller, speaks about another face of the crisis. “Inflation has not only hit the buyer, but it has hit us, too,” he tells Al Jazeera. “Purchasing power has collapsed, and people are now buying only the essentials. Prices have doubled in less than four months, so we had to reduce the quantities offered, but we cannot find anyone to buy them.”
“In my 40 years of work, I have never seen a recession this bad, not even during the worst periods of sanctions.”
Mehrah isn’t even looking to turn a profit at this point, he says. “I am just trying not to go bankrupt and close the shop I inherited from my father.”
Rampant inflation
A new report by the Central Bank of Iran revealed a historic jump in the annual inflation rate, reaching 77.2 percent year-on-year in the period between April 21 and May 20, with a monthly increase of 8.5 percent compared with the previous month. Furthermore, point-to-point inflation for goods reached 113 percent.
This is Iran’s highest inflation rate since 1942, during World War II, which triggered the collapse of food supply chains and soaring prices.
Arman Khaleghi, head of Iran’s Chamber of Commerce, Industries and Mines, points to what he describes as a “perfect economic storm” of five factors that have all poured down simultaneously on the Iranian economy.
“We are facing a deadly intersection between the elimination of the preferential currency [the subsidised exchange rate for providing basic goods], which caused food prices to soar; the protests the country witnessed at the beginning of this year, which disrupted the market system and compromised the country’s security; followed by the [US-Israeli] ‘Ramadan War,’ which is not devoid of devastating inflationary effects,” he tells Al Jazeera.
“These were followed by the annual increases in wages and energy prices at the beginning of the new Persian year, and finally the naval blockade that hindered import and export chains.”
As for the impact of the war, Khaleghi believes it was not just the military shock, but a “panic-driven demand engine” that radically changed consumer behaviour.
“With the outbreak of the war, people rushed to hoard basic goods, such as food and detergents. Demand jumped despite there being no real shortage in the markets, and this feverish rush alone is enough to drive up prices.”
This, in turn, has triggered a production shock. The damage inflicted on primary industries, led by petrochemicals, drove up packaging costs for the food, pharmaceutical and detergent industries. Furthermore, problems in the steel sector have diffused into the car and home appliance sectors, he says, transmitting the contagion of inflation from the factory to the store shelf.
Khaleghi points to an external factor that acted as the “knockout blow,” namely the maritime blockade that has made travelling to Iran a perilous mission for cargo ships. In this regard, he says, “Even the mere news of a ship being targeted immediately raises prices, let alone the existence of actual difficulties and palpable shortages that have forced the search for more expensive alternative land routes. This has plunged the import process into a dark tunnel and spread a sense of impending scarcity in the market, translating into skyrocketing prices.”
Regarding the figures, Khaleghi addresses the paradox of increased workers’ wages and salaries at the beginning of the year against inflation that has exceeded all official expectations. He reveals the hidden tragedy, saying, “The decision to raise wages and salaries was intended to compensate for the effects of the removal of the preferential currency rate and to preserve the purchasing power of the working class. However, the increase, which seemed substantial on paper, proved entirely insufficient in reality. The result is a sharp decline in real purchasing power, which begins by devouring household savings, then preys on health, medical, and education budgets, until it ultimately impacts daily sustenance.”
Khaleghi warns of a vicious cycle closing in on the economy, stating, “We are in a situation where the state itself is bearing the brunt of the economic slowdown. Tax revenues, which were supposed to offset part of the cost of the preferential currency reforms, are also shrinking. Thus, we are faced with an impossible equation: the citizen’s income is melting away, the state’s income is eroding, and prices continue to soar to heights unseen in decades.”
‘Standing on the edge of an iceberg’
Over in Tajrish Square on the north side of the city, where a popular market appears packed with customers at first glance, conversations with shop owners soon tell a completely different story.
“You would think the market is alive, but it is clinically dead,” Reza, 47, a shop owner, tells Al Jazeera.
“People come here because the market is the last free place for entertainment. They wander aimlessly, remembering the days when they used to enter shopping malls and leave with bags that filled their car trunks. Today, however, they might not buy anything, and I do not blame them. As a merchant myself, I can no longer afford to buy what I sell.”
Reyhaneh, 32, an accountant, says: “Every day, I pass by here, and I make sure to buy something, but I feel sad when I see hundreds of people wandering around with empty hands. They did not come just to look at the prices, but many of them leave when confronted with the exceedingly high prices.”
Her husband, Mahmoud, 37, a lecturer at a private university, joins the conversation, telling Al Jazeera, “You might hear here about inflation exceeding 300 percent for some goods, and you might think it is a sudden shock caused by the war. But the truth is that these figures would not have been possible if not for structural diseases accumulated over decades of relying on oil revenues.
“The country used to cover its wounds with petrodollars, and now that the effect of the anaesthetic has worn off, all the ailments have surfaced at once.”
Looking at shelves crowded with goods, Mahmoud argues, “What worries me is not just the price hikes, but the experts’ estimates of the consequences of flawed economic policies that have not yet emerged, because they have effectively hidden behind the noise of the war.
“This means we are standing on the edge of an iceberg; what we see now is only the tip. To make matters worse, we are stuck in a state of neither war nor peace, and this state of suspension is the worst poison that can afflict an exhausted economy.”
World
A glowing red room in southern Lebanon shows life after the fighting
TYRE, Lebanon (AP) — Hassan Ammar is based in Beirut, Lebanon, and has worked for The Associated Press since 2008. Since 2016, he has been based in Beirut covering conflicts, politics, breaking news and daily life across Lebanon and the wider Middle East.
Here’s what he had to say about this extraordinary photo.
Why this photo?
I made this photograph while documenting the impact of the war between Israel and Hezbollah on civilians in southern Lebanon. I was working on a story about families who had been displaced by the conflict and were beginning to return to their homes. While much of the damage was visible outside, I was interested in documenting the quieter moments inside people’s homes and how they were adapting to life after the fighting. When I entered this apartment, the unusual atmosphere immediately caught my attention and felt like a powerful way to tell that story.
How I made this photo
The image was made in the southern Lebanese city of Tyre while I was covering the aftermath of the conflict. I had knocked on the door of an apartment to ask permission to photograph damaged buildings from the balcony. As soon as I entered, the intense red light filling the room caught my attention. The apartment’s balcony glass had been shattered by nearby strikes, and the residents had hung a red sheet over the opening to provide privacy and block the strong sunlight. With no electricity in the area, the room was almost completely dark, creating a dramatic contrast between the glowing red fabric and the deep shadows.
As the apartment owners were working to secure and cover the damaged balcony doors, I noticed the silhouette created by the afternoon sun shining through the red sheet. The dark curtains framing the opening added another layer to the scene, almost like a theater stage, helping draw the viewer’s eye toward the bright red light. I began looking for a composition that would emphasize the unusual light and mood. I was not specifically expecting a person to appear in the frame, but after a short moment someone moved behind the fabric and pressed a hand against it. That simple gesture immediately transformed the scene, giving the image a human presence and emotional weight.
The photograph was made with a Sony A1 and a 24-70mm lens. I exposed for the bright red fabric and the silhouette created by the sunlight while allowing the rest of the room to fall into deep shadow. The contrast between the glowing red light, the dark interior and the curtains framing the scene helped create the dramatic atmosphere I was trying to convey.
Why this photo works
For me, the photograph works because it conveys a sense of confinement, uncertainty and human vulnerability without showing a face. The hand becomes a symbol of the people living through the conflict, while the red light can evoke different emotions, including danger, fear and resilience. The image leaves room for interpretation while remaining rooted in a real situation. When I reviewed the photograph on the back of my camera, I felt it captured something deeper than a simple news image. It expressed the emotional and psychological atmosphere many civilians were experiencing after months of war.
—
For more extraordinary AP photography, click here.
World
Shark attack survivor wakes from 10-day coma and shares first words with family at her hospital bedside
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After spending 10 days in an induced coma following a shark attack on a Sydney, Australia beach, a woman uttered her first three words this week.
Leah Stewart awoke and told her family, “I love you” on Tuesday while recuperating at a hospital, according to her brother, who wrote the update on a fundraising page.
“After a week of life-support and repeat[ed] surgeries, doctors were able to extubate Leah and reduce her level of sedation to bring her out of the induced coma for a short period of time,” Stewart said. “This allowed Leah to share her first words ‘I love you’ with her Mum and partner Fernando who have been by her side in ICU since the incident.”
He added that his sister’s “first thoughts were with her daughter August,” asking if she was OK.
SHARK ATTACK TURNS HOLIDAY BOATING TRIP INTO BLOODY FIGHT FOR TEEN’S SURVIVAL
Leah Stewart was asking about her daughter after she briefly awoke from her induced coma Tuesday. (GoFundMe)
The mid-30s mother and teacher has already been through five surgeries, including having an arm amputated.
She had been airlifted to a hospital in critical condition on the morning of June 13 at Coogee Beach, a popular weekend destination, after a shark bit her legs and arms.
HEART-POUNDING VIDEO SHOWS FISHERMAN LEAPING INTO OCEAN TO SAVE GREAT WHITE SHARK
Stewart told her family that she loved them. (GoFundMe)
Stewart was swimming near shore while a friend watched her daughter on the beach when the attack happened, the Sydney Morning Herald reported.
“This is a lot faster than anyone expected, and for us this feels like a miracle and is everything so many of us have hoped and prayed for over the past week,” Stewart wrote on a fundraising page.
Police and emergency personnel at the scene after a shark attack at Coogee Beach in Sydney, Australia, June 13. (Reuters/Hollie Adams)
He added, “Leah has a long road ahead and still remains in critical care, but this is such a positive first step and gives us hope for Leah’s long-term recovery.”
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Stewart’s attack came after three men have been killed by sharks in Australia since May. A 12-year-old boy was also killed by a shark in Sydney Harbor in January.
World
Who will control Africa’s AI infrastructure and at what cost
Johannesburg, South Africa – In April, African Union ministers gathered in Tangier, Morocco, to discuss artificial intelligence at a moment when governments across the continent are racing to develop AI strategies, attract investment and expand digital infrastructure.
Beneath the enthusiasm, however, sits a more fundamental question. As foreign technology companies invest in data centres, cloud services and AI systems across Africa, how much control will African countries ultimately have over the infrastructure on which those technologies depend?
The debate reflects a broader shift in how policymakers are thinking about AI. For years, discussions focused largely on adoption: how governments, businesses and public services could use the technology. Increasingly, attention is turning to ownership, governance and the terms on which AI systems are developed and deployed.
Several governments have framed the issue in those terms. Nigeria, Kenya, Egypt and Ghana have all released national AI strategies in recent years that highlight the need to build local capacity and reduce dependence on foreign technology providers. Ghana’s national strategy, launched in April, describes AI as a “sovereign capability”. Forty-nine countries, along with the African Union, have endorsed the Africa Declaration on Artificial Intelligence, which calls for greater investment in African AI infrastructure, talent and innovation, alongside proposals for coordinated financing mechanisms.
At the same time, translating ambition into policy has not always been straightforward. In South Africa, a draft national AI policy was withdrawn earlier this year after officials identified references that could not be verified and appeared to have been generated by AI tools, highlighting the practical challenges governments face in regulating rapidly evolving technologies.
Global competition, local leverage
The discussion is unfolding as global competition over AI intensifies. Major technology companies, cloud providers and governments are competing for access to data, computing power and new markets. For African countries, that competition may also create space to negotiate.
Priyal Singh, a geopolitical analyst at Signal Risk, told Al Jazeera that the fragmented nature of the global AI industry could strengthen that position.
“African states will indeed be provided with greater room for manoeuvre on AI and data infrastructure, precisely due to how contested and fragmented this industry is amongst global leaders,” he said.
He pointed to regulatory tensions surrounding Starlink’s expansion in parts of Africa as an example of governments becoming more assertive in their dealings with global technology firms.
“Major tech companies will need to bend to local concerns much more often than they would otherwise expect,” Singh said.
The infrastructure gap
Yet leverage in the AI era is not only political. It is also infrastructural.
Africa remains significantly underrepresented in the global digital economy’s physical backbone. Industry estimates suggest the continent accounts for less than one per cent of global data centre capacity, despite being home to roughly 18 per cent of the world’s population. Research by McKinsey has found that Africa’s five largest data centre markets combined have less capacity than France. Across much of the continent, unreliable electricity supply remains a major constraint on expansion.
Those limits help explain why negotiations over data centres and cloud infrastructure have become increasingly sensitive.
Kenya’s contested data centre deal
One of the most closely watched projects has been a proposed $1bn data centre development involving Microsoft and Emirati technology company G42 in Kenya.
The project drew attention after Kenyan President William Ruto highlighted the scale of its energy demands, warning that infrastructure of that size would require substantial additional power generation.
Reports have also pointed to discussions over commercial arrangements and long-term commitments linked to computing capacity. Kenyan officials have maintained that talks around the project remain ongoing.
Whatever the outcome, the episode illustrates the trade-offs governments face: attracting investment in AI infrastructure while weighing energy needs, financing costs and long-term strategic dependence.
What countries gain and what they give up
The question of who builds Africa’s digital future extends beyond Western technology companies.
Sanusha Naidu, a senior research fellow at the Institute for Global Dialogue, told Al Jazeera that debates about diversification are often more complicated than they appear.
“Whether it’s seen as diversifying from Western tech companies or shifting towards Chinese-based companies, I think it’s generally part of the cost-benefit factor,” she said.
For governments, she argued, the key issue is what is returned through these partnerships.
“Whether it’s a US company, a company from Europe, or a Chinese company,” she said, policymakers must weigh the broader developmental impact of such investments.
She compared current AI infrastructure debates with earlier waves of foreign investment.
“What we saw in the 1990s around the textile industry is investment comes in, but there’s a lot of subsidisation by the recipient country. With data centres, it’s much more intense. It’s also how big consumers of water these data centres are, and how that impacts socioeconomic issues within African countries.”
Data, surveillance and sovereignty
Concerns about dependence extend beyond data centres.
Over the past decade, African governments have adopted a growing range of foreign-built digital systems, from cloud computing platforms and digital public services to surveillance and smart city technologies. At the same time, debates over data governance, digital sovereignty and where sensitive information should be stored and processed have become increasingly prominent across the continent.
Similar arguments have been made by supporters of plans to establish an Africa Credit Rating Agency, designed to offer African-led assessments of sovereign creditworthiness rather than relying exclusively on established international ratings agencies.
The missing public
Yet much of the discussion about AI governance remains concentrated among policymakers, regulators and technology companies.
Joseph Asunka, chief executive of Afrobarometer, told Al Jazeera that the debate is still far removed from everyday citizens.
“These negotiations should not just be conducted at the elite level and dumped on citizens,” he said. “If citizens do not trust their government’s actions in this space, it creates a trust gap, which could have negative implications for the adoption of fintech, e-commerce and e-government tools.”
He added that concerns about data protection and digital security are already widespread across African populations, even if AI itself is not yet widely understood.
Beyond dependency
The debate echoes older questions about economic sovereignty that have shaped African politics for decades. Independence-era leaders argued that political freedom meant little without control over economic resources. Today, similar questions are emerging around data, computing power and digital infrastructure.
Alongside large-scale investment, governments and development agencies are also exploring ways to build local capacity. Projects such as the United Nations Development Programme’s timbuktoo initiative aim to strengthen African technology ecosystems through support for innovation, entrepreneurship and digital infrastructure.
Such efforts remain modest compared with the scale of global AI investment. But they reflect a broader attempt to ensure African countries participate not only as consumers of AI systems, but also as contributors to their development.
Africa is unlikely to become self-sufficient in artificial intelligence, nor is that the objective for most governments. The continent remains deeply integrated into global technology supply chains and will continue to rely on international investment, expertise and partnerships.
The question that remains
The question facing policymakers is therefore less about whether Africa will use AI than about the terms on which it should do so. As governments negotiate new investments, draft regulations and build digital infrastructure, decisions made now could shape who controls the technologies that increasingly influence economies, public services and everyday life.
“These negotiations should not just be conducted at the elite level and dumped on citizens,” Afrobarometer’s Asunka said.
“If citizens do not trust their government’s actions in this space, it creates a trust gap, which could have negative implications for the adoption of fintech, e-commerce and e-government tools.”
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