The inflation rate in Iran is a major factor in the level of poverty in the country, and increasing economic inequality.
Although a generally high inflation rate in Iran has been a factor for at least the last twenty years, there has been a sharp rise in the rate this year, accompanied by a decrease in the value of the Iranian currency.
Today there is a slew of reportage on the collapse of the Iranian rial. They all contain one big error of omission: no inflation rate. It is soaring. As of 6/25/18, I measure #Iran‘s annual inflation rate at 135%. https://t.co/6QZVrZR1m4 pic.twitter.com/pwrnU3bdFw
— Prof. Steve Hanke (@steve_hanke) June 25, 2018
The Head of Parliamentary Research, Mohammad Ghasemi, has been an outspoken critic of the increase in inflation. “The inflation rate in Iran is one of the highest inflation rates in the world,” he said. “Per capita income is declining and the purchasing power of individuals has decreased to one third compared to 2011, which has affected poor families more,” he added.
Ghasemi said that inequality in Iran was increasing with big differences between provinces. Factors that exacerbated the level of economic insecurity included poor economic stability and a decrease in the business and commodity markets.
#Iran‘s actual inflation rate reported at %225.
Don’t believe any statistics provided by the Iranian regime or even the World Bank, the IMF… https://t.co/nFdumHmF57
— Heshmat Alavi (@HeshmatAlavi) November 16, 2018
A professor at Ardabil University, Hashem Mozaffari, said that the rise in the cost of living in Spring this year has means that many people have lower purchasing power. “The dollar price and the outbreak of the coronavirus have closed some businesses and inevitably created problems in the community.
Continuation of this process can pave the way for the bankruptcy of some jobs and businesses in society,” he said. Mozaffari pointed out that the inflation rate in the first quarter of this year was more than 40%, while the salaries of many government workers only went up by 15%, causing an obvious shortfall. Basic goods have gone up more than 40%, he said.
Mozaffari said that employees on fixed salaries had been badly affected by the rise in prices. “To offset the negative effects of inflation, one way is to increase household incomes, which is possible through more work and government assistance,” he said.
Infographic from Etemad Online, a semi-official #Iranian website shows workers’ wages for last 10 years. #Iran‘s workers get less than $100/month despite Iran’s 50% inflation rate (World Economic Forum – June 2019).
Another reason for #IranProtests. pic.twitter.com/uZCnVWsEMM
— Iran News Wire (@IranNW) July 11, 2020
Of course, the economic woes of Iran are not affecting everyone equally. One of Iran’s economic experts, Morteza Afghah, said that 1% of Iranian society controls $57 billion, but does not work or pay tax. With this being the case, why would the Iranian people not rise up?
The Iranian uprising will certainly lead to the overthrow of the Iranian Regime, especially with the help of the People’s Mojahedin Organization of Iran (PMOI/MEK) and MEK resistance units within Iran, who have been so instrumental in the organizing the protests and breaking the Regime’s atmosphere of fear.
Iranian officials, including Supreme Leader Ali Khamenei, have repeatedly admitted that the MEK is responsible for the protests and expressed fear that this could well mean the end of the Regime.
Always remember how #Iran‘s regime spends money that belongs to the Iranian people:
Houthis—at least $360 mn/yr
Iraqi militias—$150 mn/yr
All the while, two thirds of Iran’s society lives in povertypic.twitter.com/icjuLZcXlm
— Heshmat Alavi (@HeshmatAlavi) July 25, 2020