The Government's Economic Locomotive on a Path to Collapse; Food Prices Remain at the Top of Inflation Table

The government of Ebrahim Raisi has recorded many negative economic milestones over the past two years, the most significant being the ongoing inflation saga. However, the inflation of food and beverages is the most sensitive record that has placed Ebrahim Raisi's economic locomotive on a path to collapse. According to the latest report from the Statistical Center, the inflation rate for food and beverages in Tir (July) was about 70 percent. Investigations by VOA indicate the worsening economic conditions in rural communities in Iran, where the annual inflation rate for this sector in Tir was nearly 52 percent. Meanwhile, according to calculations by this government center, the annual inflation rate for urban dwellers was 46.8 percent. The report indicates that food inflation in Tir was 67 percent, with red meat and poultry leading the way at an inflation rate of 86 percent. Research shows that in the year ending in Tir, the inflation rate for dairy products and eggs, which are among the most important daily consumables, was 71.5 percent. Another noteworthy point is the inflation of bread and cereals, which was accompanied by an inflation rate of 58.3 percent, indicating a creeping price increase in this sector. The price of bread, however, increased by 40 percent two days ago in Mashhad, and officials have announced that price increases will also be seen in other provinces. In response to the accelerating price increases and the emptying of people's tables, the spokesperson for the thirteenth government claimed on Thursday, August 5, that Ebrahim Raisi 'does not sleep at night' due to the rising prices. Mohammad Reza Farzin, the head of the Central Bank, has also recently spoken about the trend of decreasing inflation, considering it ongoing. Although statistics show a decreasing trend, experts believe that the Iranian economy faces larger challenges ahead. In this regard, Payman Molavi, an economic expert, told the 'Khabar Online' website: 'I hope this does not happen, but if the growth of liquidity exceeds 4 percent per month and economic growth is close to one to two percent, we could see an inflation rate of 70 percent.' The new report from the Statistical Center shows that in Tir, the monthly housing inflation was 2.4 percent; point-to-point inflation was 38 percent, and annual inflation was 36 percent. In the same month, housing-related services also witnessed significant inflation, with monthly maintenance and repair service inflation at 4.6 percent; point-to-point inflation at 46.4 percent, and annual inflation in this sector at 50.3 percent. The Tasnim news agency also reported that the average housing price in Tehran has surpassed 70 million tomans, and with a housing loan of 960 million tomans, only 14 square meters of housing can be purchased. The roots of the unstoppable inflation and price increases in Iran, despite government promises, are evident in conversations with the Deputy of the Iranian government. Mohammad Machinchi stated: 'The people of Iran feel inflation daily and do not need government statistics.'