Secretary-General of 'Workers House': Inflation Will Exceed 50 Percent

The Secretary-General of 'Workers House', a labor organization affiliated with the government, emphasized that living conditions for people have become very difficult and that the 30 percent interest rate on deposits indicates that we will witness a '100 percent increase in inflation', and inflation below 50 percent is no longer relevant. Alireza Mohajoub told the 'ILNA' news agency, affiliated with 'Workers House', that bank deposits with a 30 percent interest rate are set to find their place in the economy and the Central Bank intends to continue this trend. According to Mohajoub, if this path continues, banks will become places for 'usurers', and it does not make sense for production to pay this level of interest, leading to increased prices and consequently higher inflation. The 30 percent interest-bearing deposit certificate was implemented by the Central Bank in Bahman, which was met with public enthusiasm and differing opinions from experts. Some experts evaluated this measure positively as a means of collecting small investments and its impact on markets like currency. Others believe that increasing bank interest means higher financing costs for production, which will lead to inflation. Reports indicate that the impact of the 30 percent deposit certificate on the currency market was limited to one week, and after the dollar price dropped from 60,000 tomans to the 55,000 toman range, the US dollar in the free market has again increased to 58,000 tomans. Currently, due to banks' reluctance to provide loans for production, the cost of securing liquidity for production in Iran, considering hidden costs, exceeds 30 percent. Iranian society has consistently faced inflation above 40 percent in recent years, which has continuously shrunk the household budget in Iran.