An Economic Newspaper: The Real Inflation is Higher than Official Statistics

An economic newspaper published in Tehran has analyzed the 'public sentiment' regarding inflation in 2023, stating that households have experienced inflation rates much higher than the official government figures in areas such as clothing, housing, food, and other sectors. The newspaper 'Donya-e-Eqtesad' emphasized in a report published on its Telegram channel that although the average inflation rate over the past year was 40.7% compared to the previous year, the prices of red meat, chicken, and fish surged by 86%. According to this media outlet, last year's inflation for food and beverages was 52%, marking a sharper rise in food costs compared to the general inflation rate compared to 2022. The report noted that even in purchasing fruit, people experienced higher inflation than the government's announced figures, with fruit prices increasing by 48% in 2023 compared to the previous year. The report also mentioned a 47% inflation rate for clothing, and the author emphasized that in such conditions, the public's perception of inflation diverges increasingly from the official inflation rate. The report described the situation of low-income groups as much more fragile and difficult compared to higher income deciles, stating that the weight of food expenses for low-income individuals was 1.5 times that of high-income deciles. The newspaper also reported that rent consumes over 70% of 'monthly living expenses for tenants,' forcing most tenants to cut back on 'many other living expenses, including food.' This situation comes as government officials, relying on statistics extracted by government agencies, claim that inflation is decreasing and economic conditions are improving in the country. In this context, the Governor of the Central Bank of the Islamic Republic announced on March 15, 2024, during a meeting with bank managers, that the Central Bank's inflation target for March 2025 is to bring point-to-point inflation into the 20% range. However, Mohammad Reza Farzin's statements faced criticism from experts and analysts, who assessed 2024 as a very difficult year due to the continuation of the Islamic Republic's tension-inducing policies outside Iran's borders and the persistence of economic challenges and obstacles. Predictions for 2024 indicate that the dollar price will move towards 70,000 tomans, and in the most optimistic scenario, inflation will remain above 40%. An Associated Press report highlighted the collapse of the national currency's value: Iranians' savings are evaporating. The narrative of people regarding protein consumption; the absence of meat on their tables. The riddle of income and expenses in Iran; a salary of $136 against expenses of $500. A warning about 67% inflation next year; an official labor organization: Protests in Iran will intensify. The price of the US dollar 'in online transactions' has crossed the 62,000 toman mark. The Statistical Center: Inflation rate above forty percent, but 'decreasing'; the Deputy of Raisi: The meaning of 'decreasing inflation' is not that prices are not rising.