Criticism of the Central Bank Governor of Iran; Trade News: Cherry-Picking Economic Statistics Continues

An economic website criticized the contradictory statements of the Governor of the Central Bank of Iran regarding the cause of inflation, stating that the cherry-picking of economic statistics by officials continues. Trade News regarded Mohammad Reza Farzin's remarks about the impact of liquidity on price increases as completely contrary to his past claims. This website referred to Farzin's statements in June of this year, where he said: 'Some constantly say that liquidity and banks' overdrafts are increasing and immediately conclude that rampant inflation is awaiting Iran.' Regardless of this contradiction, the Central Bank Governor stated that the point-to-point consumer inflation rate has decreased by about 15 percent since the beginning of this year, and last month, the monthly inflation growth rate of goods reached zero percent. Accordingly, if we consider the point-to-point inflation rate of 64 percent in Esfand 1401 and the claimed reduction of about 15 percent so far, the point-to-point inflation in Tir was 50 percent. The Central Bank Governor's remarks come at a time when rising prices in Iran have jeopardized the livelihoods of a wide range of people, and the latest reports indicate that people's purchasing power has decreased to the extent that buying half a loaf of bread has become common in some areas. Additionally, the newspaper Jahan San'at wrote that it was supposed that 'nothing would become more expensive in the new year'; now bread, a staple food for the underprivileged in several provinces, has become more expensive, and buying half a loaf of bread has long been common. The decrease in people's purchasing power has led to a reduction in the per capita consumption of many essential items in the food basket, to the extent that the newspaper Etemad reported on August 9 that the per capita consumption of red meat has decreased from 13 kilograms in 1390 to 3 kilograms in 1401. Accordingly, the price of each kilogram of chicken has risen from 25,000 tomans in 1390 to 120,000 tomans in 1402. This newspaper also reported on May 2 that 'many' people have turned to 'barter' for obtaining meat and chicken 'for today and tomorrow or entertaining guests,' exchanging it for 'local yogurt and cheese, pickles, or homemade jam.' Reports indicate that a very complicated pricing situation prevails for other consumables as well. Accordingly, the price of rice, which was about 26,000 tomans in 1399, is now priced between 130,000 and 180,000 tomans in the best case in the market. The price of a liter of milk, which was announced by the government as 6,000 tomans in 1399, is now sold for 30,000 tomans in dairy shops this summer. In this context, economist Siamak Shojai previously told Voice of America that three factors—'corruption, mismanagement, and the Islamic Republic's desire to acquire nuclear weapons'—have led to Iran's economy not being a normal economy and moving towards crisis and destruction. In these circumstances, the government is unwilling to reconsider the minimum wage for workers, and the Administrative Justice Court has rejected workers' complaints against the government.