The National Council of Resistance of Iran (NCRI), and the People’s Mujahedin of Iran (PMOI / MEK Iran), reported that in the latest study from Iran’s Statistics Center, household spending will climb by more than 30% by 2020.
The highest increases in food expenses
As in previous years, the highest increases in food expenses were connected to bread, meat, and fruit, while the largest increase in non-food costs was related to housing.
Nevertheless, inflation has risen again in the first months of the new calendar year (beginning March 21), and according to the Statistics Center, it now stands at 43 percent, the highest rate in Iran in the last two decades.
Putting at least some bread on the table
Parallel to the growing prices of cars, the prices of items produced and provided by the government are also rising rapidly. Similar to quasi-state-owned firms that boost product prices for any pretext, the most recent example being the hike in metal and cement prices under the guise of power outages.
Putting at least some bread on the table is considered the bare minimum in Iran, where many individuals have given up on buying or building a home and are forced to live in rental houses, slums, or even sleeping on rooftops. Many Iranians, today, can no longer afford to buy bread.
Bread prices have doubled on average
“In this context, the head of the Tehran Chamber of Guilds announced the formal increase in bread prices. ‘The governorate formally announced the new costs of several varieties of bread to the Chamber of Guilds.
Bread prices have doubled on average, making it unclear how the vulnerable sections of society would feed themselves,’ he stated “according to an article published in the Tejarat daily on July 20.
One of the most important elements in macroeconomic instability, according to Kamran Nadri, an Iranian economist, is the regime’s budgetary and extra-budgetary commitments.
Chronic inflation in the Iranian economy
“Iran’s economic problems are usually unrelated to different governments. The existing problems are chronic and there is strong inertia, and even the thinking that governs the economy tends to persist. Therefore, based on what has happened in the past, governments just come and go and cannot make a difference.
As a result, we can conclude that this instability, especially in prices and chronic inflation in the Iranian economy, is likely to continue. I think in the future, given the current situation, we will follow down the same path,” According to a report published in the state-run Tejarat-e Farda daily on July 19,
Mafia-style groups dominate Iran’s economy
The fact that mafia-style groups dominate Iran’s economy and major industries is also acknowledged by government officials.
“Mr. Raisi! What you receive is not a government, but a large economic enterprise that plays a role in economic interactions such as increasing the exchange rate or currency depreciation,” a member of the regime’s Majlis (parliament) said recently to the mullahs’ incoming president Ebrahim Raisi in this regard. “How can such a corrupt and rent-seeking structure serve the country?
This structure bears no similarity to a servant state…Tribal-style and rent-seeking management resulting from the national budget relying on oil has left a legacy that if you do not change it, you can be sure that it will swallow and transform pure objectives altogether,” the Majlis members added, according to a July 21 piece published in the state-run Eskenas daily.