A Trade Official: Prices of Household Appliances Will Be 'Liberalized'

A trade official has reported that due to issues in the household appliance sector, a meeting was held with the Minister of Industry, Mine and Trade (IMT), who agreed to the 'liberalization' of prices in this market. The Secretary of the Audio and Video Equipment Association emphasized that the Minister of IMT, due to their industrial background, 'understood our problems well.' Alireza Shahidi stated that the Minister of IMT had a favorable view towards eliminating 'controlled pricing' and it was decided to conduct the necessary investigations in this regard. These statements and the 'imminent' price increases come as reports indicate that household appliance prices have increased by up to seven times over the past four years. The newspaper 'Javan,' affiliated with the IRGC, wrote on May 25 that 'some individuals want to exploit the chaotic market to empty the pockets of people amidst various political and economic events in the household appliance distribution network.' The newspaper emphasized that in March 2017, 'you could buy a 26-foot LG side-by-side refrigerator for 3 million tomans. At that time, each dollar was about 3,700 tomans. In other words, this refrigerator cost about 90 dollars for the consumer, including customs duties and import tariffs. Now, a 26-foot G Plus side-by-side refrigerator produced domestically sells for about 30 million tomans in the market. If we take each dollar as 50,000 tomans, this refrigerator costs the consumer 600 dollars.' On June 19, the then-spokesperson of the Ministry of Industry, Mine and Trade of the Islamic Republic announced the 'issuance of a price increase permit' for 'the upcoming price hikes' of many household items essential for Iranian families. Omid Qalibaf stated that the government permit for official price increases had been issued for items such as 'televisions, refrigerators, freezers, washing machines, and dishwashers.' The household appliance market is one area that Ali Khamenei, as the leader of the Islamic Republic of Iran, has directly intervened in. Khamenei wrote in a letter to Ebrahim Raisi on September 26, 2021, that 'the import of these products breaks the backs of producers and must be stopped.' This decree came at a time when LG and Samsung, two well-known South Korean brands, had cut their trade relations with Iran following U.S. sanctions in 2018. The Islamic Republic's efforts to produce a 'national mobile phone' remind one of the production of a 'national car.' An economist has stated that a 70% inflation rate is on the way; the Statistical Center reports that inflation has decreased. A member of parliament criticized the 'manipulation of numbers' in Raisi's government, claiming that the real inflation rate is 120%. The burden of inflation on rural households in May showed a point inflation rate of 60% and food inflation of 77%. The increase in disorder in the Iranian market; the head of the Household Appliance Sellers Union stated that people lack purchasing power.