The National Council of Resistance of Iran (NCRI), and the People’s Mujahedin of Iran (PMOI / MEK Iran), reported that despite officials’ false promises, Iran’s economic situation continues to deteriorate as Hassan Rouhani’s government enters its final days. The economic issues that have wreaked havoc on people’s lives have caused state media to express concern about how people will react.
“According to statistics released by the Statistics Center, the average inflation rate in April surpassed its 1.5-year high and reached 41 percent. Annual inflation reveals that price increases are continuing year after year,” the state-run Jahan-e Sanat reported on Sunday.
According to the newspaper Jahan-e Sanat, the “41 percent inflation rate in April indicates a few things. Rising liquidity and the monetary base, at least in the second part of last year, were the driving forces behind rising inflation. Inflation is projected to continue to exceed 40% in the coming months as monetary unit changes increasingly affect inflation.”
The article by Jahan-e Sanat then concedes that rising inflation will result in “skyrocketing prices of consumer goods and a decrease in people’s purchasing power, undermining wage increases.” This is a serious threat to people and society.”
Iranian employees and pensioners, who account for a substantial portion of the country’s population, are among the most vulnerable members of society. As a result, they are barely surviving by in the face of skyrocketing inflation and prices.
“The rapid rise in prices and the resulting decline in people’s purchasing power have made life extremely difficult for workers. Workers are in desperate need of housing and clothing, notwithstanding their employment insecurity,” the state-run Resalat daily admitted on Sunday.
“Workers make up 63 percent of society,” says Faramarz Tofighi, Chairman of the Islamic Labor Council’s Wage Committee. The prices of various goods such as meat, rice, detergents, dairy products, etc. are increasing daily.”
“Officials say the price increase is reasonable but do not say who is going to buy the goods. How can workers and retirees, who in the ideal conditions receive a salary of 3,600,000 Tomans per month, withstand these prices?” According to Resalat daily on Sunday.
The main causes of increasing inflation and prices are the Iranian regime’s disastrous actions, such as the export of terrorism, entrenched corruption, and poor economic strategies to compensate for its budget deficit.
“Banks continue to print massive amounts of banknotes. As a result, the country’s liquidity is progressively increasing every day. The fundamental cause for Iran’s high level of liquidity compared to other countries is banknote printing, according to the Vatan-e Emrooz daily published on Sunday.
“The most devastating effect of banknote printing is increased inflation,” according to Vatan-e Emrooz. The creation of banknotes has always caused the increase of Iran’s liquidity to outpace economic growth, resulting in the extreme inflation rate.”
“Incompetent and ill-considered decision-making methods have resulted in a great deal of corruption and inefficiency in the country. On 14 May, Farshad Momeni, one of the regime’s economists, told the state-run Eghtesad-e Sarmad daily that “those wrong policies that create inflation because they are anti-production and based on injustice are the roots of all small and big problems of Iran’s economy.”
The Iranian people are fully aware of the regime’s role in ruining the nation’s infrastructure. Protests are still going on in Iran, and there are growing calls to boycott the regime’s rigged presidential election.
Boycotting the regime’s election demonstrates that people believe the theocracy is incapable of resolving their problems.