Unbridled inflation becomes unbearable for Iran’s people

 Author: Shamsi Saadati

Prior to the inauguration of Ebrahim Raisi as president the regime in Iran was spreading propaganda about how the economic situation will change, and how the welfare and livelihood of the people will improve. However, statistics show that not only has there been no improvement in the economy and/or living conditions of Iranian households since Raisi took office, many essential items have actually become even more expensive.

There is no doubt that the regime needed widespread propaganda when it decided to establish a government run by hardliners. Subsequently, with some reforms, they instilled in the public the belief that the living conditions of Iranian families will change with the new government.

Yet when it comes to people's livelihoods, Raisi’s cabinet not only has nothing to say, but the high cost of many basic items has left people in despair.

Less than two months has passed since the formation of Raisi’s government, a cabinet that continues the regime’s long-standing tradition of reaching deep into people’s pockets to finance its expenses.

Raisi’s government’s promises to control inflation and skyrocketing prices, while according to state media, the price of Iranian rice has increased by nearly 100 percent in comparison to last year.

The price of Thai and Indian rice has also risen by about 300 percent.

"Not only the price of rice, but the price of all basic goods ... has increased," said Jamil Alizadeh Shayegh, Secretary of the Iranian Rice Association, acknowledging the staggering price of rice across the country over the past 12 months.

Alizadeh attributes this increase to a lack of government oversight. “We have repeatedly announced on various TV channels and other media that, unfortunately, the networks and regulatory bodies in the rice market pretend to be asleep and do not wake up! And no one answer to the people in this regard,” he added.

Rising prices of other basic goods

Of course, rice is not the only basic good that has experienced catastrophic high prices in recent months. Other basic commodities necessary for Iran’s families, including eggs, have in recent months all surpassed their previous high prices. Last week a 30-piece stack of eggs was selling at 500,000 rials (around $1.80).

The situation is the with protein foods. Most people across Iran have not eaten meat for months or  even years. And while meat prices are on the rise leading to  a 30 percent drop in demand in recent months, other protein products, such as soybean, have also become extremely expensive.

While each 250 gram package of soybean was sold at 24,000 rials (around 10 cents), this price has now increased by over 500 percent, selling at 150,000 rials (around $0.54), according to state media.

35 percent drop in food demand

According to the secretary of Iran’s Food Wholesale Union, the increase in food prices has reduced the demand for food items by 30 to 35 percent compared to the same period last year.

The latest World Bank statistics show Iran's economy, with a real GDP of $192 billion, is currently ranked 51st in the world. That means half of the UAE and a mere quarter of Turkey. With these statistics, Iran is now one of the countries with very low per capita income.

Of course, the Iranian people do not expect a plan or an actual solution from the regime. Regime Supreme Leader Ali Khamenei appointed the new cabinet for the sole reason of maintaining his hold on power and preventing the people from toppling his rule.

This article was first published by english.mojahedin