An Economist: The Government Lacks the Ability to Control Inflation

An economist states that there are currently two short-term and long-term solutions for overcoming economic problems and controlling inflation, but the government lacks the ability to control inflation. Morteza Afagh, in an interview with the Tehran-based newspaper 'Samt', identified the short-term method for controlling inflation as 'lifting sanctions' and mentioned that the government 'does not have the ability to control inflation in the short term.' After Iran joined 'BRICS', Ebrahim Raisi stated that we will pursue the lifting of sanctions and will not use foreign policy as a basis for internal competition. However, the website 'Khabar Online' reported on the performance of Ebrahim Raisi's government, noting that after two years, Raisi has failed to ensure and secure the interests of the Iranian people in the face of the United States, contrary to promises to lift sanctions. The report highlighted weaknesses in Raisi's government, including 'lack of political will' to negotiate with the U.S., 'heavy shadow' of opponents, lack of social capital, 'lack of expertise' in negotiations, and an 'ideological perspective' on issues. In April of this year, the 'Fardaye Eghtesad' website, after surveying 50 economists active in the field of economic research in Iran, announced that 'the majority are not optimistic' about reducing inflation. 89% of economists believe that inflation in the year 1402 will either be the same as the previous year or even exceed it. Morteza Afagh also stated in his interview with 'Samt' that solving internal problems is a long-term approach, and if perspectives on people's livelihoods do not change, structural transformations in the election and appointment system do not occur, and meritocracy is not established, even if sanctions are lifted, problems will persist. In this context, the 'Farhikhtegan' newspaper, on the 8th of Esfand, criticized the economic policies of Ebrahim Raisi's government, writing: 'Considering that the purchasing power of low-income households has decreased by 40% in recent years, the government must compensate for the decline in purchasing power in various ways to protect the country from its social, economic, and even security repercussions.' The 'Jomhouri Eslami' newspaper also criticized Ebrahim Raisi's government in its editorial on the 6th of Esfand, stating: 'In the past 18 months, you gentlemen, with the most unified government in the history of this country at your disposal, have tried every possible approach and yet have worsened the economic situation.' Ali Khamenei, the leader of the Islamic Republic, named this year 'the year of controlling inflation and increasing production', but what occurred in the first three months of this year was an increase in the prices of basic goods, recession, rising housing rents, and a further decrease in the purchasing power of Iranian citizens. 'High prices, inflation, a disaster for the people' was the slogan of retirees in Sanandaj, where protests were held with this slogan. Protests over livelihoods occurred in several provinces of Iran, with retirees stating: 'We handed the government over to thieves.' A news agency reported a 20% discount from housing sellers; the recession is deep and ongoing. Two days of work for one kilogram of meat; the food basket of workers has become 'starch-based.' Ignoring requests for wage revision; the Minister of Labor says you should negotiate yourselves.