The Lowest Income Group in Iranian Society Faces the Highest Monthly Inflation Pressure

The latest report from the Statistical Center of Iran indicates that with the continued rise in point-to-point and monthly inflation rates in November of this year, the lowest income group in society has borne the brunt of monthly inflation. According to the Statistical Center of Iran, the point-to-point inflation rate in November reached 32.5% and the monthly inflation rate reached 2.8%. This is while the lowest income group, identified as the 'first decile' in the 'expenditure deciles' table, experienced an inflation rate of 3.77% last month, which has increased compared to October. On the other hand, the monthly inflation rate for the wealthiest group, identified as the tenth decile, had an impact of 2.53%, showing a decrease of 0.5% compared to October. According to the website 'Tejarat News', the type of consumer goods is the reason for the difference in inflation rates among the deciles, and studies by the Statistical Center of Iran show that lower deciles allocate a larger portion of their income to purchasing food, beverages, and tobacco. In this regard, a field report in Iran about poverty and inflation shows that people's lives have become 'credit-based', and the installment purchase of essential goods has even cast a shadow over the middle class's life. According to a report on November 18 from the newspaper Ham-Mihan, 'Iranians' interest in joining credit and installment purchase platforms is increasing day by day,' and the issuance of small loans has seen a '200% growth'. This report mentions '5 million tomans in credit for purchasing food' with 'payment in four installments without the need for a guarantor or collateral'. According to the Research Center of the Islamic Consultative Assembly on November 25, the poverty rate last year, with a growth of 0.4%, affected more than 30% of Iran's population, and it is predicted that this year's statistics will remain at the same level. Currently, the minimum monthly wage for workers subject to labor law, married with children, is about 11 million tomans. Meanwhile, according to some estimates from labor activists who previously were members of government institutions, the livelihood basket has reached about 37 million tomans per month. Farshad Momeni, an economist, has emphasized that government budget policies for the next year have made the situation even more dangerous and concerning. According to the Statistical Center of Iran, in November, Sistan and Baluchestan province recorded the lowest inflation rate, while the provinces of Isfahan, West Azerbaijan, and Ardabil recorded the highest inflation rates. Claims by the Minister of Labor: Pension funds are the reason for 40% inflation. The Organization of Trade Supervision threatened 'price-gouging bakers' with 'action'. Borrowing from '14 loss-making banks' from the Central Bank has left the banking system's capital 'below negative one'. Reports: Installment purchases have cast a shadow over the 'middle class' in Iran.