The Government’s Encroachment on Low-Income Families’ Tables
Heavy Inflation Pressure on Lower Deciles
The Government’s Encroachment on Low-Income Families’ Tables: The Statistical Center of Iran recently published a report indicating that the point-to-point inflation rate for the entire country in October 2022 was recorded at 48.6%. This figure shows a slight decrease of just over 1% compared to September, but the reality goes far beyond these general statistics.
A glance at the inflation report from the Statistical Center clearly reveals the deepening gap between the affluent and low-income groups. The statistics related to goods and services inflation indicate worsening conditions for citizens who receive minimum wages or whose monthly income is less than the household subsistence basket. In fact, the performance of Raisi’s government has not only failed to alleviate the suffering of the deprived but has unprecedentedly expanded the wealthy minority’s share of the low-income groups’ tables.
Inflation Surge Emptied People’s Tables
Most of this gap is in the essential goods and services sector, which the lower deciles of society use. Among the most important sections mentioned in this report is the very high inflation in food items. Traditionally, when high inflation surges are experienced, the group that sees the most price increases is the food, beverage, and tobacco items group.
The range of inflation changes related to the food, beverage, and tobacco group is between 68.6% for the tenth decile and 7.7% for the first decile. This statistic indicates an increased demand for the minimum necessities of life among the weaker segments. This painful reality also has another aspect, which is the profitability of this price increase for the high-income segments.
In such a way that the government, with its strange and unprincipled policies, has created conditions where the wealthy even gain more benefits from their daily food and drink. In other words, the price increase of food and beverages for the wealthy has not only been less than for the poor but also places an additional burden on the lower-income deciles that can only meet their basic needs for living.
The range of changes for the same index for the food, beverage, and tobacco group is between 22% for the first decile and 23% for the tenth decile. This element also indicates a deep gap between low-income groups and the wealthy. Meanwhile, the government, emphasizing a 1% monthly inflation reduction, has started to create a media wave. By delving into the Statistical Center’s report, one can realize the false nature of the government’s propaganda in some media.
Non-Food Goods and Services
The concerning point is that in the past October, not only was inflation pressure on food items imposed on low-income groups, but an even deeper gap was observed in the non-food goods and services sector. The inflation of non-food goods and services was registered between 34.2% for the first decile and 36.7% for the tenth decile.
Moreover, the details of the Statistical Center’s October report on the monthly inflation of non-food goods and services are between 32% for the tenth decile and 37% for the first decile. The share of monthly inflation of non-food goods and services from the total household inflation in the past month of 2022 was also recorded at 20.3%. Among these, the high-income decile’s share was 13.9% and the last income decile’s share was 23.8%.
Seyed of the Deprived’s Bouquet on the Poor’s Table
This report and the analysis of the presented data show that the inflationary effects of the food, beverage, and tobacco group are more felt in the lower deciles of society. Meanwhile, the inflationary effects of the non-food goods and services group are noticeable among the high-income segments.
With the analysis of the above data, it can be concluded that Raisi’s government, by implementing price adjustment policies alongside increasing pressure on the market to enforce the economic directive model, has removed pressure from the middle classes and significantly increased the living costs for low-income groups.
In other words, and more simply, it can be said that the government has distributed the pressure it promised to impose on the wealthy among low-income households. This point is a reminder of the slogans he used to chant in support of the deprived and the downtrodden, but the 15-month record of Ebrahim Raisi’s government shows that the thirteenth cabinet, under the banner of supporting the deprived, has sweetened the rich’s palate more than ever.