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Inflation Rate Increase to 36% if Negotiations Fail

Feb 2, 2026 February 2, 2026 12 min read 📰 Radio Farda
📋 Key Takeaway

The Iranian parliament is set to vote on the confidence of the proposed Minister of Science, Fakhruddin Ahmad Danesh Ashteyani, amid concerns from principlist representatives about his suitability. Additionally, a report warns that if nuclear negotiations fail, inflation could rise to 36% next year, highlighting economic vulnerabilities. The funeral of pop singer Morteza Pashaei drew tens of thousands, reflecting the deep social impact of his death.

🔍 Quick Context Guide
💡 Bottom Line: Iran faces significant internal political challenges and potential economic instability, with implications for regional and international relations.

👥 Key Players

Fakhruddin Ahmad Danesh Ashteyani MENTIONED
Proposed Minister of Science
"His appointment is contentious due to political affiliations and past actions, impacting the government's ability to implement educational reforms."
Hassan Rouhani MENTIONED
President of Iran
"His administration's ability to appoint ministers reflects on its political strength and stability."
Principlist Representatives MENTIONED
Members of Iranian Parliament
"Their opposition to Ashteyani highlights the political divide and challenges within Iran's government."
Central Bank of Iran MENTIONED
Iran's central financial institution
"Its reports on inflation are crucial for understanding economic challenges and policy impacts."

📰 What Happened

The Iranian parliament is preparing to vote on the confidence of Fakhruddin Ahmad Danesh Ashteyani as Minister of Science amidst political opposition. Concurrently, a report warns that if nuclear negotiations fail, inflation could rise to 36% next year.

  • Fakhruddin Ahmad Danesh Ashteyani faces opposition from principlist representatives.
  • The Central Bank of Iran warns of a potential 36% inflation rate if nuclear negotiations fail.

💡 Why It Matters

🇮🇷 For Iran: The outcome of the ministerial appointment affects government functionality and educational reform, while inflation impacts economic stability.
🌍 Regional: Iran's internal political stability and economic conditions influence regional security and economic interactions.
🌐 International: Nuclear negotiations and economic stability in Iran are of international concern, affecting global markets and diplomatic relations.

📚 Background

Iran is navigating political divisions within its government and economic pressures exacerbated by international sanctions and nuclear negotiations.

Iranian politics Nuclear negotiations
📡 Source: STATE MEDIA
📊 Confidence: 70%
State media may reflect government perspectives and priorities, requiring cross-referencing with other sources for a balanced view.

One day before the parliamentary vote of confidence for the fourth proposed minister of the eleventh government for the Ministry of Science, the Iran newspaper published a photo and interview with Fakhruddin Ahmad Danesh Ashteyani on its front page, quoting him as saying: "If I gain the trust of the parliament, I will continue the work with new forces." However, the Kayhan newspaper emphasized in one of its main headlines that "the majority of parliament representatives do not consider the proposed minister of science suitable." The Ta'adol newspaper examined the potential inflation rate for the coming year, stating: "If negotiations fail, the inflation rate will rise to 36% next year." The Khorasan newspaper reported on the "unofficial visit" of the Omani foreign minister with a "significant message" to Tehran. The newspapers Shahrvand, Etemad, Mardomsalari, and Arman published reports and notes about the "funeral procession of several tens of thousands for Morteza Pashaei" in their Monday editions. The Shahrvand newspaper dedicated its front-page photo to the large presence of Morteza Pashaei's fans at the funeral, calling it "an Iranian gathering for Pashaei," while the Etemad newspaper described the attendees as "strange spectators of a farewell." Saeed Moayedfar, a sociologist, emphasized in the Shahrvand newspaper that "the death of Pashaei, who passed away at the age of 30, represents the failure of the generation of the 60s." Salar Aghili, a traditional music singer, wrote in a note for the Arman newspaper: "The flood of people who came out on Sunday for Morteza Pashaei demonstrated their love for art and artists like Pashaei." Hamidreza Shakouhi in the editorial of the Mardomsalari newspaper titled "Messages from the Funeral of an Artist" wrote: "What some wish to remain hidden is the unbelievable impact of pop music on people's lives, especially the youth. An impact so profound that it can create such a massive gathering. The same type of music that has been denied and even suppressed for years." The Javan newspaper reported on its front page about "Iran's rank of 189 in traffic accident safety among 190 countries" and stated that the annual costs of traffic accidents in Iran amount to 47 trillion tomans. The Aftab Yazd newspaper dedicated its front page to "the smallest child living on the streets and his mother." According to this newspaper, "Moein," who is now referred to as "the smallest homeless child" in Tehran, has lived in homelessness with his addicted parents since birth, but has been rescued by some homeless individuals in Tehran with the support of the NGO "Talou' Bi Nishanha" and handed over to social services. The latest speculations about the fourth proposed minister of science; the majority of principlist representatives oppose him. One day before the parliamentary vote of confidence for the fourth proposed minister of the eleventh government for the Ministry of Science, the Iran newspaper published a photo and interview with Fakhruddin Ahmad Danesh Ashteyani on its front page, quoting him as saying: "If I gain the trust of the parliament, I will continue the work with new forces." The proposed minister of science emphasized that "I have a plan to solve all university problems" and told this newspaper: "My first priority is the qualitative development of universities. I think we have had enough quantitative development, and now it is time to turn this quantitative development into qualitative. The next issue is improving the quality of education and research at universities. The commercialization of science is very important for us." Fakhruddin Ahmad Danesh Ashteyani also spoke about his plans for student organizations, saying: "When we talk about student organizations, minds inevitably go towards political campaigns. This is not our intention. Student organizations mean that the students themselves should be active, and no one from outside the university should interfere in student activities and allow students to pursue university political affairs with their own will and thought direction." The fourth proposed minister of science in Hassan Rouhani's government also responded to some principlist representatives' remarks about "his opposition to the student Basij and signing a letter supporting the protesters during the 2009 protests," stating to the Iran newspaper: "Some try to portray me as political. My personality is scientific and cultural," but some "insist on dragging me into this realm. The issues raised against me so far are numerous. I deny all of them from this platform. I have not signed any letter, and I do not even know the content of some of these letters. I deny all these matters." The Iran newspaper also reported that Hassan Rouhani, the president of the eleventh government, will go to the parliament to defend the proposed minister of science. Simultaneously, the Shargh newspaper reported that Fakhruddin Ahmad Danesh Ashteyani attended a meeting with members of the "Followers' Fraction" close to Ali Larijani on Sunday, but in this meeting, "no questions focused on the proposed minister of science's expertise and management capabilities" and in this meeting, "two representatives close to the principlist faction took charge of the psychological game against him." This newspaper also wrote: In the meeting of the proposed minister of science with the Followers' Fraction, the principlist representatives of the parliament "did not ask about the key word of sedition but focused on the signing of letters and statements attributed to Danesh Ashteyani regarding the Basij." Shargh wrote: "The consensus of the representatives present in the Followers' Fraction is that Danesh Ashteyani has presented a good program and has sufficient composure in dealing with the representatives, and has a relevant background with the Ministry of Science and is familiar with the issues of this ministry, but it seems that the parliament is engaged in choosing a minister of politics instead of a minister of science." Mohammad Reza Tabesh, a representative close to the reformists, told the Shargh newspaper: "The vote of confidence for the proposed minister of science has been pre-planned, and there is a will to disrupt the relationship between the parliament and the government." However, the Kayhan newspaper emphasized one day before the vote of confidence for Fakhruddin Ahmad Danesh Ashteyani that "the majority of parliament representatives do not consider the proposed minister of science suitable." This newspaper also wrote: "On the eve of the parliament's vote of confidence for the proposed minister of science, Ashteyani's in-person explanations to the members of the Followers' Fraction could not convince them, and this meeting did not yield the desired results for the government." Kayhan pointed out that "if we exclude the impeachment of the former minister of science, the session on Tuesday will be the fourth session in which the representatives of the people will examine the qualifications of the proposed minister of science by the government," writing: "In these four sessions, the votes and opinions of the parliament representatives have been revealed to the government, and everyone knows that the Majlis will not give a positive vote to individuals associated with the 2009 sedition." The Central Bank of Iran's research institute; inflation rate increase to 36% if negotiations fail. The Ta'adol newspaper examined the potential inflation rate for the coming year, stating: "If negotiations fail, the inflation rate will rise to 36% next year." The implicit warning from the Ta'adol newspaper about the consequences of failed nuclear negotiations on the inflation rate is based on a recent report from the Monetary and Banking Research Institute of the Central Bank of the Islamic Republic of Iran. According to this newspaper, the Monetary and Banking Research Institute of the Central Bank of the Islamic Republic of Iran has considered four scenarios for predicting inflation in its latest report, the first scenario being "continuation of the policy paradigm of the eleventh government," and based on this scenario, the point-to-point inflation rate will reach 15.8% this winter and decrease to 14.9% next winter. Also, based on this scenario, the annual inflation rate ending in the winter of 1393 will be 15.3% and in the winter of next year will be 15.2%. The second scenario under consideration is "failure of negotiations," and according to the report from the Monetary and Banking Research Institute, in the "failure of negotiations" scenario, the point-to-point inflation rate this winter will reach 24.3% and next winter will reach 36%, and also "in this scenario, the annual inflation rate ending in the winter of 1393 will be 18.4% and in the winter of 1394 will be 34.4%" and in case of failure of negotiations, "the Iranian economy will witness a surge in the exchange rate." According to the Ta'adol newspaper, in the report from the Monetary and Banking Research Institute, another scenario titled "average of the past 22 years" has been considered, according to which the point-to-point inflation rate, which will reach 17.9% this winter, will increase to 20% in the winter of 1394. Also, based on this scenario, the annual inflation rate ending in the winter of 1393 will be 16% and in the winter of 1394 will be 16%. This newspaper described the fourth scenario under review in the report from the Monetary and Banking Research Institute as "correct economic policy paradigm" and wrote: in this case, "the point-to-point inflation rate will decrease from 10.1% in the fall and winter of this year, and from the spring of next year, the point-to-point inflation rate will be single-digit, so that the point-to-point inflation rate will decrease from 8.4% in the spring of 1394 to 7.4% in the summer, 7.4% in the fall, and 4.4% in the winter of 1394. Also, based on the scenario of the "correct economic policy paradigm," the annual inflation rate ending in the fall of 1393 will be 15.6%, in the winter of 1393 will be 12.4%, and in the spring of 1394 will be 10.5%, but from the summer of 1394, the annual inflation rate will also be single-digit, so that in the summer of 1394, the annual inflation rate of this scenario will be 9.2%, in the fall of 1394 will be 8.2%, and in the winter of 1394 will be 7.7%. The Ta'adol newspaper reminded that "the Monetary and Banking Research Institute used data from 12 groups of consumer price indices, variables from 8 main groups of producer price indices, gold prices, exchange rates in the free market, fluctuations in exchange rates in the free market, monetary base, money supply, and liquidity volume" to analyze various scenarios for predicting inflation this year and next year. The unofficial visit of the Omani foreign minister to Tehran with a "significant message." The Khorasan newspaper focused on the "unofficial visit" of the Omani foreign minister to Tehran and reported on the negotiations of Yusuf bin Alawi with Hassan Rouhani and Mohammad Javad Zarif ahead of the Iranian negotiation team's trip to Vienna. According to this newspaper, the Iranian negotiation team will head to Vienna on Tuesday morning to begin the final round of negotiations one week before the nuclear deadline with the 1+5, but before this trip, "the Iranian delegation hosted the Omani foreign minister in Tehran, and Yusuf bin Alawi informally arrived in Tehran on Saturday night and left Tehran for Muscat after meeting and discussing with the President of the Islamic Republic and the Iranian foreign minister on Sunday afternoon." The Khorasan newspaper emphasized that "Yusuf bin Alawi, 69, who has spent almost the second half of his life as the foreign minister of the Sultanate of Oman, came to Tehran while it is believed that he carried an important message for Iranian officials regarding the nuclear issue." This newspaper pointed out that "last week, a trilateral meeting of the foreign ministers of Iran and the United States and the coordinator of the 1+5 group was held in Muscat, the capital of Oman," and wrote: "Yusuf bin Alawi had a one-hour, previously unannounced meeting with John Kerry at Muscat airport last Wednesday during the refueling of the U.S. foreign minister's plane, and this meeting took place while "John Kerry was in Beijing accompanying Barack Obama on a trip to China and had stopped in Muscat after consulting with Obama at the airport." "An Iranian gathering for Pashaei." The Shahrvand newspaper dedicated its front-page photo to the large presence of Morteza Pashaei's fans at the funeral, describing it as "an Iranian gathering for Pashaei," and wrote that on Sunday, "the people who attended the funeral from the Vahdat Hall to Behesht Zahra" were "so numerous" that the burial of Morteza Pashaei was delayed. This newspaper emphasized that many had come to the funeral, those who had gathered in parks the day before singing his songs, or gathered in front of Bahman Hospital, where he was hospitalized, stating: "The young age of Morteza Pashaei, his battle with cancer, his popularity, and his beautiful voice all completed the circle of Pashaei's popularity. The sense of altruism among the people in the three days that passed was more evident than ever, much more than the death of any artist or celebrity. These days, many listen to Pashaei, the car stereos are filled with Pashaei's voice, many, even those who had not heard of this pop singer before, are now searching for his songs and albums. Even the people themselves were excited by this sense of altruism." The Etemad newspaper published a photo of Morteza Pashaei's funeral on its front page and described the attendees as "strange spectators of a farewell." In its report on the funeral of Morteza Pashaei, this newspaper wrote that on Sunday, "Hafez Street from Karim Khan to College Bridge was filled with a crowd dressed in black, holding photos of their beloved singer and singing songs from their favorite singer with tears in their eyes along the way." Etemad reported the number of attendees at Morteza Pashaei's funeral as "tens of thousands" and wrote: "It was astonishing, the flood of people coming from all directions towards the Vahdat Hall. This many people attended the funeral of a young singer. What was most evident was the passionate presence of the youth, precisely those who were Morteza Pashaei's target audience." The Etemad newspaper also noted in a short commentary alongside its front-page photo that: "The surface of the matter may seem like a simple sense of solidarity among the audience of an artist, but the events that took place on Friday in Tehran and other cities in Iran and the situation that arose yesterday at Morteza Pashaei's funeral show that the social consequences of this pop singer's death are more significant and far-reaching than a simple mourning.

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

Translation confidence: 85%

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