Iranians observed the winter solstice festival of Yalda with smaller, more modest gatherings as rising prices and a weakened currency limited spending. Annual inflation stands at about 41 percent and the US dollar trades near 1.32 million rials on the informal market, roughly double last year. Vendors report sharply higher costs for staples like pomegranates and a significant drop in sales, though families continued traditions such as reading Hafez and sharing seasonal fruit and nuts.
Yalda Celebrations Dimmed As Inflation and Sanctions Bite Iran
An Iranian woman in traditional dress amid Yalda decorations in northern Tehran (STR)(STR/AFP/AFP)
Iranians from across religious and social backgrounds marked the ancient Persian festival of Yalda on Sunday, but many said this year’s gatherings were muted as soaring prices and currency instability squeezed household budgets.
Yalda, observed on the winter solstice, traditionally brings families together to share seasonal fruits, nuts and sweets, read poetry and keep vigil through the longest night of the year.
Family, Poetry and Tradition
"We mainly spend time with family — grandparents, aunts and cousins," said 16-year-old student Maral Bagherpour with a smile while visiting Tehran’s Tajrish Bazaar. "We take fal-e Hafez, drink tea or coffee. My grandmother sometimes sings for us."
The ritual of fal-e Hafez — consulting the verses of the 14th-century poet Hafez to seek guidance or comfort — remains a central part of Yalda nights in homes across Iran.
Economic Strain on Festivities
Despite continuing traditions, shoppers and vendors said high inflation and a weakened currency left many families unable to buy the customary treats for Yalda. In early December the Central Bank reported annual inflation at about 41 percent. On the informal market the US dollar was trading near 1.32 million rials — roughly double its level a year earlier — cutting deeply into purchasing power.
"Because of recent events and the sharp rise in the dollar, people's purchasing power has fallen a lot," said Mary Goudarzi, 37, an interior designer, while shopping for Yalda items. "Many of the items we used to see on every table are less common this year."
Vendors described weaker sales. Fruit seller Aliakbar Mohammadi said pomegranate prices had doubled year-on-year and that foot traffic and purchases were noticeably down. Rahimi, a 21-year-old nuts-and-fruit shop owner who gave only his last name, said: "It's difficult for people to buy what they want. The market and the economy are in turmoil. Sales are down significantly this year."
Regional Tensions and Wider Context
Heightened regional tensions have compounded economic uncertainty. In June, strikes that Iranian officials blamed on Israel hit military and nuclear sites as well as residential areas; Iran said the attacks killed more than 1,000 people, including nuclear scientists and commanders. Those strikes triggered a roughly 12-day confrontation in which Iran fired drones and missiles at Israel, and reports said US forces also struck some Iranian targets. The broader geopolitical fallout has contributed to currency volatility and heightened economic pressure on ordinary Iranians.
Resilience and Observance
In parts of Tehran some shops and shopping centres still displayed Yalda decorations — artificial trees hung with pomegranates and large plates of seasonal fruit — underscoring the festival’s cultural importance even as many families trimmed spending. A cartoon in the reformist Ham Mihan newspaper captured the mood, depicting a needy figure reaching for a basket of fruit hanging from the moon as a commentary on rising costs.
Yalda celebrates the victory of light over darkness and is observed in Persian-speaking communities in countries such as Afghanistan and Tajikistan. Along with the fire festival at the end of the Iranian calendar year, Yalda traces its roots to Zoroastrian traditions that predate Islam in the region.
