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Damascus struggles with soaring prices

By Xinhua in Damascus, Syria | China Daily | Updated: 2013-11-01 07:17

In al-Shaalan market in the Syrian capital of Damascus, with many food and clothing shops, fewer people now come to buy expensive items.

Most shops don't have customers, and only those selling cheap falafel sandwiches are still busy.

To cope with the economic hardship as a result of the long-standing domestic crisis and the US and EU economic sanctions, most Syrians have had to abandon fancy restaurants and opt for cheap dinners or buying low-priced takeout food.

A man in his 40s waiting for his turn to buy sandwiches said: "It's the only thing in this country whose price is still rational and affordable for most Syrians. We used to eat falafel once a month, but now because of the unprecedented expensive living conditions, we eat it every week."

As part of the austerity measures, many Syrians have cut heavy spending on big-ticket items and stopped buying expensive food, even meat.

Syrians complain about the soaring prices of all consumer items, which have made most out of reach for the public amid reports that the country's inflation rate is now one of the highest in the world.

Official figures have put the inflation rate at around 50 percent, but unofficial estimates say it's about 300 percent.

Despite the government's efforts to control markets and bring the exchange rate of the Syrian pound against the US dollar back to normal levels, Syrians still grumble about the government's inability to reduce the soaring prices of consumer items and food.

The central bank of Syria has intervened strongly in the exchange market, and the country's policy helped push up the pound exchange rate. The dollar is now trading at less than 170 pounds on the black market, down from 300 pounds two months ago.

Meanwhile, Syrian Prime Minister Wael al-Halqi has recently confirmed that the country has a large amount of hard-currency reserves, brushing aside concerns over Syria's ability to ensure people can afford to buy daily necessities.

But a recent statement by the United Nations Economic and Social Commission for Western Asia said that 4 million Syrians are subject to famine, or living below the food poverty line by the commission's own standards. It also indicated that another 8 million Syrians now live under the minimum poverty line, while 18 million live below the maximum poverty line.

(China Daily 11/01/2013 page12)

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