Iranian Regime Attempts to Downplay the Country’s Devastated Economy
The Iranian regime’s Statistics Center announced in its recent report on the change in the prices of food and non-food items that the inflation rate reached 40.02 percent at the end of the 1400 Persian calendar year (March 2021 – March 2022), down 1.2 percent from February this year.
The publishing of these data, which are far from the reality of the situation, is alarming, especially while Iranian citizens’ lives are being wrecked by poverty and their backs are being shattered under the weight of extraordinarily high prices that are not proportionate with their earnings.
Food and beverages are the most significant commodity group for the population, according to the latest report from Iran’s Statistics Center, which has remained unaltered from the previous month. They point out that the major food, beverage, and tobacco groups are experiencing a 40% inflation rate.
The Statistics Center gathers a basket of various goods and calculates the inflation rate by comparing the average price changes from the previous month and year. This is a deceptive technique that is used repeatedly, despite the fact that the most needed food items contain a wide range of things that are not included in the Statistic Center’s basket.
Food groups such as rice, meat, oil, tomato paste, poultry, eggs, dairy, sugar, tea, and sugar, according to experts, account for the majority of the inflation that puts people under stress. Despite the regime’s allocation of the chosen 42,000 rial currency to control the cost of certain of these things, these goods reach the people at the free-market exchange rate, effectively wasting foreign exchange resources.
The regime’s Statistics Center, like many of its other organizations, is politically motivated and serves the regime’s goals, which include projecting a normal scenario despite the Iranian economy’s precarious state. Almost all of the regime’s institutions are obligated to tell the public the regime’s version of the facts.
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Even the regime’s supreme leader Ali Khamenei was forced to admit as much, stating, “The result of all government and banking support and the prevention of foreign competition has practically led to higher prices. And in the field of justice, we acknowledge that we are left behind.”
While some pro-government analysts predict that the Iranian economy will recover if a new nuclear deal is reached with the West, the vast majority of Iranians believe that the new accord’s benefits will have little impact on their lives.
The economic equations demonstrate that, while the nuclear deal and the release of blocked foreign exchange resources will have a short-term positive impact on the Iranian economy, the country is still trapped in a vicious cycle of inflation due to its weak production foundations and industry.
Iran’s economic status in the new year is absolutely dire. Unemployment that persists, unmet public expectations, and, as a result, the growth of public anger and uprisings. The issue of removing the popular 42,000 rial currency will widen the gap between the people and the dictatorship, something that regime specialists have repeatedly warned about.