Iran is the only country in the world, according to economists, that has had double-digit inflation for more than four decades. Double-digit inflation, under these analysts, implies a rapid spread of poverty among the population and the collapse of economic and social systems.
“Part of the country’s problems is 500 to 700 percent inflation,” Hassan Hemmati, a member of the Majlis (parliament), told the official ILNA news agency on May 18.
According to data released by the Ministry of Industry, Mine and Trade, the prices of some commodities, such as oil, rice, and beans, have grown by more than 100% in 2020, while others have increased by two to four times, and 41 items have increased by more than 50%.
“Monthly inflation no longer makes sense these days, and weekly inflation, and perhaps daily inflation, is more tangible,” the state-run Etemad newspaper said on June 27 in an article titled “Inflation and empty tables.”
“While inflation appears to be a purely economic issue, it has social, cultural, and even political ramifications over time. According to the Social Security Administration, 30 million people are living in extreme poverty, implying that the country must act rapidly to avoid irreversible damage from inflation.
According to an article published on June 26 by Jahan-e Sanat, a state-run journal that follows economic indicators, “The highest record according to the statistics of the Statistics Center of Iran in June compared to the same period last year belongs to cooking oil and fat with 112.7 percent; followed by juices and beverages with 79.6 percent; and milk, cheese, and eggs, which have become 78.2 percent more expensive. Fish price has increased by 74 percent, sugar 69.6 percent, and meat 69 percent.”
Despite the government’s efforts to downplay inflation, the media and government experts acknowledge that Iran is the world’s sixth most inflationary country, trailing Venezuela, Zimbabwe, Argentina, Sudan, and South Sudan.
Minimum wage earners make more than three times the poverty line, while the true poverty threshold is more than 100 million rials (about $400), making them four times below the poverty line.
The increase in the price of food and basic commodities in the first two months of the Persian new year (beginning March 20) took out all of the regime’s anticipated compensation increases for workers and many of its employees.
According to the Statistics Center, the point-to-point inflation rate in June was 47.6 percent, up 0.7 percent from the previous month.
As per a June 23 survey by the Setareyeh Sobh newspaper, the country’s families had spent an average of 47.6 percent more than in June on a “set of identical goods and services,”
Despite having between 8% and 10% of the world’s natural resources and only 1% of the world’s population, Iran is experiencing rising inflation and extreme poverty under the mullahs’ rule.