In a situation where inflation has reached 93% for some items compared to last year, and some essential goods have been reduced or removed from household shopping baskets, the Ministry of Economy of the Islamic Republic has claimed in a report published in its official media that it has 'pulled the brake on inflationary factors.' According to the state news agency 'IRNA,' this report claims that the 'thirteenth government' has initiated a 'coherent, coordinated, and focused program' to tackle the inflation super-challenge in 1401 (2022-2023), which includes 'preventing inflationary decisions and controlling inflationary engines.' Meanwhile, the Central Bank of the Islamic Republic, after stopping the publication of inflation data, announced at the beginning of Esfand (February) that it seems the inflation rate for 1402 (2023-2024) will break the record of 49% inflation from 1374 (1995). In its latest report, the bank stated that the point-to-point urban inflation rate in Esfand 1402 was '54.2%' and the average urban inflation rate for that month was '55.9%.' The Ministry of Economy and Finance added in its report that 'holding weekly inflation control meetings, forming a task force to monitor and control inflation, and preparing and issuing the policy package of Dey 10, 1401' are among the most important 'indicators of public satisfaction' regarding the economic performance of Ebrahim Raisi's cabinet. New data from the 'Statistical Center of Iran' shows that 'red meat' had a 93% inflation rate in Bahman 1402 (January-February 2023), making it the highest among ten essential food items surveyed. According to the website 'Tejarat News,' the Statistical Center of Iran published the consumer price index for Bahman, indicating that all ten subgroups related to food and beverages have seen 'rising' prices over the past 12 months. Severe inflation of essential goods has led to a decrease in their purchase by citizens and a significant reduction or removal of these goods from the usual monthly shopping baskets of most Iranian households. Simultaneously, 'fruits and nuts' also experienced inflation 'above 50%' in Bahman, with an average price increase of '51%.' Previously, Hamidreza Imam Gholi Tabar, an inspector of the Supreme Assembly of Workers' Representatives, stated that the poverty line for a family of four has exceeded '25 million tomans.' The minimum monthly wage for workers covered by labor law, married with children, is about 8 million tomans this year. In another part of the Ministry of Economy's report, it is claimed that the thirteenth government of the Islamic Republic has prioritized 'controlling inflation' since its inception. Afshin Sadreddin, CEO of the Central Union of Light Livestock, stated on Bahman 29 that the per capita consumption of red meat in the country should return to '12 kilos' per year, and the 'halving' of per capita consumption is due to 'decreased purchasing power of the people and the removal of meat from the shopping basket of some income groups and reduced purchases by others.' In this context, Iranian media have reported the continuation of inflationary conditions in the country, declaring this trend a threat to various sectors, including restaurants, with the news agency 'ILNA' reporting on Esfand 13 that in recent months, licenses for '30 well-known restaurants' in Shiraz have been revoked. The website 'Eghtesad24' also reported on Esfand 12, referring to a 'wide class divide' in Iran, stating that 'half of Iran's population lives below the absolute poverty line.' In this context, the newspaper 'Shargh' published in Tehran on Esfand 9, referring to the dire living conditions of the people and the government's alleged solutions, wrote that 'it seems we are not far from receiving loans to buy bananas, flour, or milk.' All these developments occur while we witness daily protests by workers, retirees, and various sectors, indicating severe economic conditions and a livelihood crisis. Nevertheless, the Islamic Republic government claims to have controlled inflation and neutralized its factors. These claims are repeated daily by responsible officials in the Iranian government, while families witness their tables getting smaller and class divides deepening every night. A news agency noted that with a livelihood basket of 28 million tomans, lower-income groups are left with only live eggs. Government officials announced a wage meeting on Tuesday; a workers' representative stated: 'We are unaware.' Half of Iranians live below the absolute poverty line; the Vice President stated that wage growth must align with the economic conditions of the country. A parliamentary representative warned of a 'huge wave of discontent' among workers; a labor activist stated that an explosive situation has arisen. Protests over livelihoods continue; retirees from the public sector and social security gathered in Ahvaz and Kermanshah. A government news agency reported that the poverty line has exceeded 25 million tomans. The sound of rising meat prices is heard; livestock numbers have decreased by 18%. A news agency reported on the livelihoods of wage earners; food inflation has reached 145%.
Consequences of Economic Inefficiency | Media: Iran on the Brink of Class Division; Government: We Have Pulled the Brake on 'Inflationary Factors'!
Iran is facing severe economic challenges with inflation rates soaring, particularly in essential goods, leading to a significant reduction in purchasing power for citizens. The government claims to have implemented measures to control inflation, but reports indicate that many families are struggling to afford basic necessities, resulting in widespread protests. The situation highlights a growing class divide and economic instability in the country.
👥 Key Players
📰 What Happened
Iran is experiencing severe inflation, particularly in essential goods, leading to reduced purchasing power and widespread economic hardship. The government claims to have implemented measures to control inflation, but evidence suggests these measures are ineffective.
- Inflation for some essential goods has reached 93%.
- The government claims to have a program to control inflation, but inflation rates continue to rise.
💡 Why It Matters
📚 Background
Iran has been facing economic challenges due to sanctions, mismanagement, and global economic conditions, leading to high inflation and reduced living standards.
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