The price of everything has gone up… Iranians moan “inflation is accelerating”

The price of everything has gone up… Iranians moan “inflation is accelerating”

“What can I say? I am a butcher but sometimes I don’t eat meat once a week.. everything has gone up in price” And “People are eating bread alone.” With these words, a number of Iranians expressed the situation that reached them in Iran, amid the decline in the purchasing power of most citizens with a significant rise in the rate of inflation, which experts consider the most severe in decades.

A severe living crisis

The country is suffering from a severe economic and living crisis due to several reasons, including The sanctions that Washington has re-imposed on Tehran since the decision of former US President Donald Trump to unilaterally withdraw his country from the agreement on the Iranian nuclear program in 2018.

The crisis has affected various aspects of life, such as The local currency has declined and the inflation rate has exceeded the 40 percent threshold annually since 2018, according to experts. Since the years of World War II.”

prices, High prices, Iran (AB)

“There is no escape”

He also attributed the current price hike to two reasons: “the sharp increase in global inflation after the Russian-Ukrainian conflict, and Iran's start of economic reforms that the government expected to lead to additional inflation,” according to what AFP reported.

In addition, the expert, who worked as an economic advisor to a number of Iranian presidents, explained that the main government action was to abandon the subsidized exchange rate that was intended for the purchase of basic materials such as wheat, cooking oil and other materials. Medical.

Even if the nuclear agreement was revived, it was not The government has no choice but to abolish the preferential price

(An economic expert clarifies)

However, despite the increase in prices, Laylaz believed that the government action was mandatory, especially since the talks between Iran and the major powers to revive the nuclear agreement It has not yet produced an understanding that restores the lifting of sanctions. He explained, “It is estimated that if Iran wanted to continue reckless spending of hard currencies this year as in previous years, we would have needed 22 billion dollars for the preferential rate.” “Even in the event of reviving the nuclear agreement, the government had no choice but to cancel the preferential price.”

For weeks, inflation is accelerating further after the government of President Ibrahim Raisi announced, in the second half of May, amendments to the subsidy system and raising the prices of basic materials such as flour, meat, eggs and cooking oil. As the prices of red meat increased by about 50 percent from the previous time, the prices of chicken and milk doubled, and cooking oil became four times what it was.

While hundreds took to the streets In the past weeks, in several cities, they rejected the rise in prices and high prices, although Raisi, who took office last August, had pledged, with the start of the implementation of the new measures, that the price hike would not affect bread, fuel and medicine.

Prices, high prices, air (AB)

These protest movements came to be added to others that have been implemented for months by various professional sectors, to demand By improving wages and pensions to take inflation into account.

It is reported that the “preferential” exchange rate started in mid-2018, coinciding with the US withdrawal from the nuclear agreement, and was fixed at 42 thousand riyals to the dollar, While the exchange rate on the black market currently exceeds 300 thousand riyals to the dollar.