Inflation surge in Iran’s harsh winter economy
According to a report by Iran Gate, the inflation surge in Iran’s harsh winter economy continues and has even accelerated, as reported by the Iranian Statistical Center regarding the annual inflation rate in December 2022.
The Iranian Statistical Center has announced an increase of over 13% in annual inflation in the first month of winter, indicating a significant decrease in people’s purchasing power.
According to the information published by the Iranian Statistical Center, the inflation rate in December 2022 has exceeded 463%, crossing that threshold. This happens at a time when the thirteenth government has always claimed to control inflation and introduced it as its main achievement to the public.
The government’s record-breaking reduction in people’s table
According to the report by the Iranian Statistical Center, the annual inflation rate in December 2022 has recorded an increase of over 13% compared to Azar 2022 for Iranian households. The inflation rate has also reached a significant increase of 513% compared to the previous month.
In other words, Iranian households are paying over 513% more for purchasing and obtaining an identical basket of goods and services compared to the same period last year.
Comparing these statistics with the inflation rate in Azar month also indicates an increase of more than 28 percentage points in the point inflation rate in the past month. In other words, Iranian citizens have incurred approximately 3% higher costs on average compared to Azar 1401.
What is the reason for inflation?
According to economists, the issue that has intensified and accelerated the trend of inflation is the release of part of society’s expectations after the currency exchange rate jumps in the free market. The report of the Statistical Center of Iran has been published under conditions where each US dollar is traded for more than 45,000 tomans in the Tehran market, and experts expect this figure to reach 50,000 tomans by the end of the year.
This price jump, which has caused multiple price tensions in the market, naturally leads to an increase in household expenses. This matter, which is obvious, has always been denied by government officials and the central bank in recent weeks.
Even in various statements, officials of the thirteenth government considered the free market rate unreal, but economists have constantly warned about the effects of releasing market expectations on Iran’s economy.
Inflation outlook in 1401
Now it seems that the abandonment of these expectations has been realized and the inflation rate is also evidence of this claim. Experts believe that the government will not be able to control the market properly by adopting policies to suppress the exchange rate.
On the other hand, it does not have enough resources to compress the price spring further. Therefore, it is expected that the inflation rate will increase at a faster pace than before, and the purchasing power of the people will plummet more intensively.
Given these circumstances and according to the analysis of economists, it seems that the annual inflation rate will exceed 50% by the end of the current year, and the point-to-point inflation rate is likely to fluctuate in the range of 55% to 60%. If this happens, it can be said that the year 2023 will be much more difficult for Iranian households and their livelihoods.
