Report from the Parliamentary Research Center: The Inflation Rate Felt by the People is 86 Percent

The Parliamentary Research Center of the Islamic Consultative Assembly reported on the "reasons for the difference between people's perception of inflation in society and the official inflation rate of the country," stating that based on a survey conducted by this center in August of last year, the "median perceived inflation rate" by the people was "86 percent." Meanwhile, the Central Bank and the Statistical Center of Iran publicly announced the "point-to-point inflation rate" for May of this year as "46 percent" and "51 percent," respectively, several months after the survey by the Research Center. Ebrahim Raisi, the President of the Islamic Republic of Iran, announced on the first day of Farvardin this year in a televised address for Nowruz 1402 that "controlling inflation" and "economic growth" are the "main programs of the government" for the new solar year. The Economic Studies Office of the Parliamentary Research Center stated that in recent years, the "country has been grappling with high and volatile inflation rates," and announced that the difference between the "perceived inflation rate" and the "officially announced inflation rate" by official institutions will seriously undermine public trust in "official statistics of the country" in the medium term. Meanwhile, Hamid Rasai, a former member of parliament, also stated in his Telegram channel that the "average prices" in Farvardin 1402 compared to Farvardin 1401 have surged by "over 69 percent," adding that the point-to-point inflation of food items has also seen a surge of "around 90 percent." The sharp increase in the inflation rate comes at a time when the minimum monthly wage for workers covered by labor law has increased by 27 percent for this year. This decision has led to widespread protests from labor activists and organizations, who have demanded a significantly higher wage increase. The website "EkoIran" also reported on the third of Khordad, citing official statistical reports and the record-breaking inflation of "69 percent" in Farvardin, that "11 million people" have been added to the population "below the poverty line" in Iran. Additionally, the Persian section of Voice of America recently held a roundtable with several experts to examine the dimensions and consequences of inflation and poverty. Ahmad Alavi, an economist, pointed out in this roundtable that the decrease in household purchasing power "damages the social status of people in Iran's class society." According to Alavi, alongside the "increase in inflation and class divide," the quality of food and life has decreased, and there are many signs of "entering a hyperinflation era in Iran." The United States Institute of Peace addressed the economic conditions in Iran in December 2022, stating that the failure to revive the nuclear agreement, improper implementation of essential goods subsidy reforms, and unrealistic budgeting have reduced the growth of gross national product, and protests following the death of Mahsa Amini have intensified this trend. The report from this institute noted that internet filtering has negatively impacted small businesses reliant on social media, causing overall disruption to consumer demand and the business environment. Experts believe that the misery index will experience significant growth in the coming months as the long-term effects of protests and government economic policies become evident. Steve Hanke, a prominent American economist and professor at Johns Hopkins University, categorized Iran among the "20 most miserable countries in the world" in his report at the beginning of Khordad regarding the "misery index among countries worldwide."