Research Report: Iran Holds Record for Inflation in the Middle East

On Wednesday, January 24, the Open Data Portal of Iran released a report on inflation, highlighting that Iran is experiencing a situation that is different from global standards. The disproportionate increase in the general price level in Iran over the past four decades has reached a critical and chronic state, not only compared to the world but also in relation to neighboring countries and regional competitors. According to calculations from the Open Data Portal of Iran, average prices have increased by 55% in Saudi Arabia, 56% in Israel, 312% in Azerbaijan, and 897% in Egypt over the past 25 years, since 1990. In contrast, the cumulative inflation rate in Iran during the same period has risen by more than 12,000%. Turkey ranks second after Iran with a cumulative inflation rate of 10,000% over 25 years. The cumulative inflation rate is calculated by multiplying the annual inflation rate over the past 25 years based on data from the International Monetary Fund (IMF). Estimates from the IMF indicate that Iran's situation is critical not only in the region but also on a global scale. In 2023, only five countries—Turkey, Argentina, Yemen, Egypt, and Pakistan—have higher inflation rates than Iran. Iran and Turkey, with a 50% inflation rate in one year, are relatively far from other countries in the region. The inflation rates in Pakistan, Egypt, and Yemen are 29%, 24%, and 15%, respectively. Gulf countries are at the bottom of the table with inflation rates ranging from 1% to 4%. The chart below shows that the Islamic Republic's efforts to bring inflation rates to normal levels over the past four decades have been unsuccessful; a crisis that, despite its extent and depth, has been contained in several countries through fiscal discipline. Uncontrolled inflation and the dream of 'population increase'; up to 500,000 fetuses are aborted annually. The hourly increase in the dollar rate in Iran; an expert states that the capital market has been 'completely' abandoned. Warning about the weakening of livelihoods in the coming year; salaries are lagging behind the inflation rate. Heavy consequences of stagflation; confirmation of widespread buying and selling of 'marriage loans' by government officials. In 15 years; wages have increased 20 times, but housing prices have increased 45 times.