Economist: Price increases in Tehran exceed all major world cities
The Economist magazine writes in its latest annual report that when calculating price increases based on the US dollar, Tehran has experienced the largest increase in prices among all major cities in the world over the past year.
In a report prepared annually by the Economist Intelligence Unit, the prices of 138 goods and services in 130 major world cities are compared with each other, and the most and least expensive cities in the world are identified.
According to this latest report, Tehran, which was the 106th most expensive city in the world for its residents based on the US dollar last year, has jumped 30 ranks to become the 79th city in this regard, indicating a sharp increase in the cost of living in Iran’s capital for people with rials income.
The Economist writes that over the past year, no other major city in the world has experienced such an increase in prices. The publication cites US sanctions against Iran as one of the factors in this process.
Reports about rising costs of living in Iran and its consequences are published daily, and among them, the Research Center of the Iranian Parliament recently reported on inflation in Iran that red meat consumption in 1398 (2019-2020) among the middle class decreased by more than 30 percent compared to 1395 (2016-2017).
Hassan Rouhani, the President of Iran, recently acknowledged the high prices of food and goods in Iran, attributing the cause to America’s “economic warfare” against Iran, but critics consider government mismanagement as one of the main causes of this situation.
Ayatollah Ali Khamenei, the Leader of the Islamic Republic, on November 4, also referred to price increases in a speech and said that in his view “these price increases… from red meat and chicken to baby diapers have no justification. With coordinated management by government institutions, these problems can be solved”.
In the latest global ranking by The Economist magazine, Hong Kong, Zurich, and Paris are introduced as the most expensive cities in the world in 2020.
The report writes that although Tehran has climbed 30 positions on the world’s cost of living ladder, prices in this city are still much lower than the three most expensive cities in the world, namely Hong Kong, Zurich, and Paris.
According to The Economist, the cost of living in cities in the Americas, Africa, and Eastern Europe has become cheaper since last year, while cities in Western Europe have become more expensive.
According to this report, this is partly indicative of an increase in the value of European currencies against the US dollar.
The largest price declines occurred in Rio de Janeiro and São Paulo (both in Brazil), which indicate currency weakness and an increase in poverty levels.
Source: Radio Farda
