Inflation Rate Reaches Record High in Iran
Iran’s highest inflation rate since World War II has been recorded during the first year of Ibrahim Raisi’s government.
Economics expert Hossein Raghfar, pointing to the announced inflation rate of 52.5 percent for the first year of the thirteenth government, stated: “Those who were zealously defending the increase in exchange rates and the elimination of the 4,200 toman preferential exchange rate should now be held accountable for the political and social consequences of the decision they made.
The university professor added: “These same individuals claimed that if we eliminate the preferential exchange rate, we would have at most a 6 to 7 percent price increase, yet today we are witnessing a 200 percent price increase for goods that were priced based on the preferential exchange rate.
Hossein Raghfar, stating that the economy has been abandoned in the thirteenth government, emphasized: “This increase in inflation rate is naturally caused by the elimination of the 4,200 toman exchange rate and the chaos in the country’s economy, and it is now proven that Iran’s economy has been influenced by power and wealth currents.”
Ibrahim Raisi promised on April 8 of this year that the government would, through appropriate measures to regulate and monitor the market, prevent disruption to public peace, but the elimination of the preferential exchange rate over the past month and a half has caused another jump in prices and a sharp increase in inflation.
The Etemaad newspaper wrote on Sunday: “Based on statistics, if the monthly inflation rate is 1.5 percent, the year-end inflation rate will be 20 percent, and if the monthly inflation rate reaches 3 percent, the year-end inflation will be 40 percent. Now, given the 12 percent inflation rate in June and if this trend continues, by the end of 1401 (2022), Iran’s inflation rate will reach 160 percent.”
On the other hand, the Tehran Chamber of Commerce in its latest report examined the inflation index status in several selected countries in March and April of this year.
Accordingly, Turkey’s inflation rate was approximately 70 percent. After Turkey, Argentina also continues to face high inflation, with the inflation rate in that country reaching 58 percent.
After these countries, Iran ranked with an inflation rate of approximately 35 percent, although this figure was announced before June’s inflation surge. Russia stands at 17 percent, Pakistan at 13 percent, Poland at 12 percent, and Chile at 10 percent in the subsequent ranks of this table.
Thus, Iran’s inflation during this period was approximately 16 times that of Saudi Arabia, 6.7 times that of Iraq, and 2.7 times that of Pakistan.
Ali Shahidi, deputy assistant for welfare at the Ministry of Cooperatives, Labor, and Social Welfare, announced on Monday, July 27 that cash subsidies will soon be converted to commodity cards.
While even some officials of the Islamic Republic acknowledge the reduction in people’s purchasing power in the current situation, officials of the thirteenth government continue to promise that they are making efforts to maintain market stability and ensure people’s livelihoods.
Source: Voice of America
