Syria between the hammer of inflation and recession

The Syrian Lira loses 43% of its original value

This SBF report talks about the declining purchasing power of Syrian lira day after day. What affects it has on the daily life of the Syrian people who run out of money because of corruption.

 

Soaring prices makes the 15,000 Lira monthly income ($176) for the average Syrian family consisting of 5 persons difficult to reach the end of the month with any money left because of the harsh conditions. The basic need of the Syrian people is bread which one ‘bundle’ equals 8 loafs costs 100 liras average, before the bread crisis was 15 liras, which means that families need to spend at least 300 liras monthly (1/5 of their income). Making paying other expenses such as rent, utilities, services, and transportation nearly impossible.

Despite the misery, the Syrian regime hasn't recognized the crisis clearly and the Prime Ministry should take these high rates of inflation into consideration.

Shy Government Recognition of the Crisis

Despite the skepticism by the official figures which talk about high rates of inflation that must be taken into account, which has been released recently by the Syrian Cabinet reports that the high rate of inflation in August 2012 to 39.49% compared with 39.13% in the month of July of the same year. The inflation rate of 2011 was 3.9% less than 2012 and the explanation from the government was because the prices of food and commodities are increasing.
Economic analysts believe that the government figures are hiding the bitter truth where the official numbers are not reflecting reality.
We have to monitor the prices in the market to prove the government manipulation. 
Broiler price rose from 100 liras to 175 liras and eggs from 130 liras to 280 liras. Economists have determined the inflation has increased by 76% after comparing the prices of some key commodities between March 2011 and December 2012.

The income gap for average Syrian citizen has been increasing for decades. Mohamed Naji al-Otri, Ex-Prime Minister had proposed to link inflation with salaries. Al-Otri had been searching for any solutions for the low-income crisis where the Syrian citizen is still striving for living within the monopoly run country controlled by traders and business people with the absence of government control; Syrians live in an open market, they live as if they are in a free zone area.

Syrians today are between the hammer of high rates of inflation and the verge of recession. Many reasons point to that as the analysts focused on studying the circumstances and consequences of rising prices. Syrian economist speaks on the condition says, “Definitely, the disorder between the size of commodity and the money supply in the Syrian market will create an extra inflation along with the paralyzing productivity and lack of materials and commodities. Another major reason for inflation is printing Syrian currency without credits. 90 Syrian liras equal 1 dollar and that has doubled since two years ago. The falling value of the Syrian lira is scaring the Syrian people as well as no savings just an empty pockets.

Economic Mass Destruction

Today, the Syrian people seem to face a collective punishment and can feel its affects and results on a daily basis. This bitter situation keeps the head of the house with a low income and incapable to feed his family or to buy gasoline, diesel, bread, or gas for cocking. The irony in the Syrian scene is that everything is available in "black market'' but it needs full pocket.