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Uncontrolled Inflation; MP: The Government is Incapable of Meeting Basic Needs of the People

Feb 7, 2026 February 7, 2026 3 min read 📰 VOA Persian
📋 Key Takeaway

An Iranian MP criticized the government's inability to meet the basic needs of the population amid soaring inflation rates, with food inflation reported at over 70%. Economist Ahmad Alavi challenged the credibility of government statistics, suggesting they do not reflect the reality faced by citizens. This situation highlights the growing discontent among the Iranian populace and the government's struggle to manage the economy.

🔍 Quick Context Guide
💡 Bottom Line: Iran's economic struggles, highlighted by soaring inflation, are causing significant public discontent and questioning of government policies.

👥 Key Players

Ahmad Alireza Beigi MENTIONED
Member of the Islamic Consultative Assembly
"He is a vocal critic of the government's economic policies, highlighting public discontent."
Ahmad Alavi MENTIONED
Economist
"He provides expert analysis questioning the accuracy of government-reported statistics."
Gholamreza Mesbahi Moghadam MENTIONED
Member of the Expediency Discernment Council
"His comments on public satisfaction and economic comparisons with China sparked debate."
Ali Khamenei MENTIONED
Supreme Leader of Iran
"His annual themes for the country, such as 'Year of Controlling Inflation and Growing Production,' set economic priorities."

📰 What Happened

An Iranian MP criticized the government's handling of the economy amid high inflation, particularly in food prices. Economists and media outlets are questioning the accuracy of government statistics and comparing Iran's situation to other countries.

  • Inflation rates reported between 40% and 54%, with food inflation over 70%.
  • Criticism of government statistics and policies by both politicians and economists.

💡 Why It Matters

🇮🇷 For Iran: High inflation affects the daily lives of Iranians, leading to increased public dissatisfaction and potential unrest.
🌍 Regional: Economic instability in Iran can have ripple effects on regional trade and political dynamics.
🌐 International: Western countries monitor Iran's economic situation closely due to its implications for sanctions and diplomatic negotiations.

📚 Background

Iran has been facing severe economic challenges, partly due to international sanctions and internal policy decisions. Inflation has been a persistent issue, affecting the cost of living for ordinary citizens.

Iranian economy International sanctions on Iran
📡 Source: INTERNATIONAL
📊 Confidence: 70%
This source provides a critical perspective on the Iranian government's handling of economic issues, reflecting broader international concerns.

While the Iran Chamber of Commerce announced the point inflation rate for June to be between 40 to 54 percent, and the Statistical Center of Iran confirmed over 70 percent inflation for food items, a member of the Islamic Consultative Assembly stated: "The government is incapable of meeting the basic needs of the people." Ahmad Alireza Beigi, a member of the Islamic Consultative Assembly, criticized the government's economic policies on July 6, saying: "The people are faced with a government that is incapable of meeting their basic needs and instead of focusing on its performance and accepting responsibility, it continuously enacts strict laws for the people." He emphasized: "In such conditions, people naturally rebel, do not comply with the enacted laws, and protest widely without regard to government statistics and claims." In this context, economist Ahmad Alavi, in the 'News Hour' program on Voice of America, questioned the accuracy of the statistics provided by government institutions regarding inflation, stating: "The Islamic Republic does not present accurate statistics and censors the numbers because these statistics do not align with the daily experiences of the people and are not accepted by them." He pointed out that the Supreme Leader of the Islamic Republic named the year 1402 as the 'Year of Controlling Inflation and Growing Production' and added: "A look at the actual economic developments and higher documents from previous years shows that every year the opposite of what Ali Khamenei named that year has occurred." According to this economist, the announced inflation rate in Iran is calculated by altering the basis of calculation, which fundamentally differs from reality, while the government also distorts and censors statistics to deceive the people. A few days ago, Gholamreza Mesbahi Moghadam, a member of the Expediency Discernment Council, said in an interview with Jamaran: "We do not have a satisfied population like the Chinese who are content with one or two meals a day." However, the newspaper Donya-e-Eqtesad, in a report examining Mesbahi Moghadam's claims, wrote: "Statistical investigations show that the Chinese not only do not eat less than Iranians, but their average calorie consumption is higher than that of the Iranian people." The newspaper emphasized: "The secret of China's economic development and increased welfare is not the behavior and number of meals of its people, but rather the correct policymaking of its officials, which has managed to lift about 800 million people out of absolute poverty." Investigations show that Iran is among the 10 countries with the highest nominal and real food inflation from March 2022 to March 2023. The Islamic Republic of Iran also ranks after Lebanon, Zimbabwe, and Argentina in terms of the highest food inflation, which stands at 73 percent.

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Translated from the original and edited for English readers. View original source →

Translation confidence: 85%

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