Food prices rise 80% in Iran; Raisi: They give coupons in Europe too

While the Statistical Center of Iran announced in its latest report that the food index in Iran has grown by more than 82 percent in the first three months of the year, Ebrahim Raisi said on Thursday in North Khorasan: "The reform of the method of allocating subsidies was only one of the factors behind the increase in the price of these types of products, and at the same time, global prices also increased, one of the factors being the war in Ukraine."

Raisi added: "Some European countries have also adopted the coupon allocation method for distributing goods due to the high cost of basic goods, and they distribute some goods in their countries in this way."

The head of government also considered it necessary to control prices and reduce inflation, saying: "When we took over the government, almost the entire amount of 8 billion 4200 Tomans allocated for the supply of basic goods in 1400 was spent by the previous government in the first 5 months of the year, and we had no money left, but despite this, we managed the country for 7 months."

In May of this year, the government officially increased the prices of four basic goods, including chicken, eggs, oil, and dairy products, and their sub-products, by removing preferential exchange rates. Ebrahim Raisi previously called the increase in the prices of essential goods “unreasonable” and considered the “abandonment of the market” a cause for concern for the people, saying: “The government considers itself obligated to provide peace to society with appropriate measures to regulate and monitor the market, as well as to untie the knots in people’s lives.”

Following this government action, various cities in Iran were the scene of popular protests for several consecutive days, protests that have now come close to a strike.

Referring to the severe inflation in 1401, a member of parliament said, “This inflation is the result of the government’s inappropriate and unscientific budgeting.” Mohseni Bandpay added, “If the government does not reform the budgeting process, we will witness inflation and inflation similar to this year’s and even more severe than this year’s.”

In April, Iran's Ministry of Industry, Mine and Trade warned of increasing poverty as prices soared.

Experts from the ministry announced that “sanctions and restrictions on financial and monetary transactions, a decrease in household income and purchasing power, a decline in domestic demand and a rise in the poverty line, high structural inflation, and market instability” will be among the major problems facing the Iranian people in 1401. They also considered “a large budget deficit, structural problems in the banking system and pension funds, inappropriate monetary policies, a lack of central bank supervision over banks, and a lack of transparency and financial and administrative corruption” among the issues and problems that are hurting the Iranian economy from the government and the system.

This is while a number of economic experts believe that the Islamic Republic of Iran is seeking to liberalize price growth to initiate economic growth. According to these experts, the government is seeking to create economic growth using inflationary tools, and this has a negative impact on the livelihoods of families because it creates production growth in a situation where costs are also rising, and this policy will definitely lead to more poverty.

Source: Voice of America