Yemenis from Aden to Sanaa Face Mounting Cost-of-Living Crisis

As fighting escalates between the Yemeni government and Houthi forces across the country, millions of citizens are grappling with a severe economic crisis that rivals the dangers on the front lines. In major cities including Sanaa, Aden, and Marib, prolonged wage delays, unpredictable pay schedules, and rising prices for basic goods are forcing families to make difficult trade-offs between survival needs and other expenses.

The situation is exacerbated by a divided banking and monetary system, which has made transferring funds between Houthi-controlled and government-held territories increasingly complex. This fragmentation, combined with disrupted oil exports and declining international aid, has deepened the nation’s economic deterioration over more than a decade of war.

In Aden, the interim capital in the south, markets are stocked, but many residents simply cannot afford the goods. Bushra Abdullah Abdulwarith, a government employee, earns 78,000 Yemeni riyals (approximately $50) per month. According to estimates from the Yemen Economic Tracking Initiative, the average household food bill in government-controlled areas is around 130,366 riyals ($83), not including rent, transport, or healthcare costs.

“Rising prices have forced many households to give up almost all non-essential purchases and cut back on some expensive basics, particularly meat,” Bushra told Al Jazeera. She added that other families are resorting to buying smaller quantities of food, often relying on credit or loans to get by.

The decline in purchasing power is visible in local shops. Ayman al-Maqtari, who works at a shopping center in Aden’s Mansoura district, noted that customers now carefully compare prices and opt for smaller packages, such as 5kg bags of rice instead of 40kg ones. “Many people have come to live day by day, or week by week,” he said, observing that credit purchases have become common as salaries run out before the end of the month.

Businesses have responded to weak demand with increased discount advertising, particularly for non-essential items like clothing. In May, the Yemeni government approved a 20 percent cost-of-living allowance for public-sector workers. However, because the allowance is calculated based on base salary rather than total compensation, the impact has been minimal for many. Bushra described the measure as “a temporary painkiller that does not reflect the scale of the actual pressure on people’s living standards.”

The severity of the food insecurity is stark. In early October, the World Food Programme reported that 74 percent of households in accessible government-controlled areas could not meet their basic food needs.

In Marib, a city that has absorbed hundreds of thousands of displaced people, the pressure on housing and public services is intense. Salah al-Zuhaifi, a government employee separated from his parents in Houthi-controlled territory, said inflation has eroded his salary’s value. “No matter how much you earn, it will not be enough to meet your needs,” he said.

Another Marib employee, Abu Mohammed Nasser al-Asbahi, earns 400,000 riyals ($250) monthly but spends more than half on rent. He explained that his salary is often exhausted within the first few days, leaving his family to rely on loans and credit for the remainder of the month. The crisis has also strained healthcare; pharmacist Khaled Mohsen reported that patients are skipping parts of prescriptions or reducing medication doses to stretch supplies, creating serious health risks.

In Houthi-controlled Sanaa and other parts of the northwest, the economic picture is similarly grim. While the riyal’s exchange rate is more stable due to strict monetary controls and a ban on government-printed banknotes, this stability has not translated into improved livelihoods. Public-sector workers in these areas have gone years without regular salaries, receiving only partial or irregular payments that fail to cover basic needs.

Private-sector workers face additional hurdles, including multiple fees, levies, and a shortage of jobs. For households reliant on remittances, the divided banking system increases the cost of moving money, further undermining financial security. Consequently, families in Houthi-controlled areas are left with few options beyond borrowing, drastically cutting spending, or depending on support from relatives.