Experts warn of impending hyperinflation and social explosion in Iran
Despite warnings from economic experts within Iran about the critical economic situation and its potential social consequences, the Iranian government has been slow to implement significant reforms and is suppressing dissenting voices. Experts are warning of an impending hyperinflation that could lead to a social explosion much worse than the protests of recent years. In March of last year, the Central Bank revealed that point-to-point inflation had reached 67%. Certain essential items such as food experienced inflation rates of 70-80%, while others, such as housing, saw rates as high as 200%.
Official statistics from the regime indicate that the housing rate has increased 450-fold between 1993 and 2021, a 28-year period. However, some experts contest this statistic as being minimal, claiming that housing prices have increased 650-fold during the same period. Despite the regime’s assertion that it has raised workers’ salaries by 27%, the inflation rate of nearly 60% means that the living conditions of the workers are worse than before.
In an interview with state media, Saeed Laylaz, an economist associated with the so-called reformist faction, referenced the uprisings in 2022 and cautioned that similar events could transpire this year. Laylaz conveyed his disappointment with the current state of the regime, lamenting, “Regrettably, things have reached a point where some of the damages and costs are irreparable, making it exceedingly challenging to rectify the situation.”
Over the past few months, numerous regime members have called upon Ebrahim Raisi to dismiss his cabinet members because of the country’s economic turmoil and disintegration in the hope of preventing new protests. In a recent development, Raisi was compelled to dismiss Masoud Mirkazemi, the head of the Program and Budget Organization, as well as Javad Sadatinejad, the Minister of Jihad for Agriculture, from their positions in his cabinet.
While the dismissal of government officials by Raisi may be an attempt to prevent new protests and restore stability, it will not address the fundamental economic issues facing Iran. Economic mismanagement, corruption, and economic sanctions imposed due to the regime’s malign activities are contributing factors to Iran’s dire economic situation.
MEK Iran (follow us on Twitter and Facebook), Maryam Rajavi’s on her site, Twitter & Facebook, NCRI (Twitter & Facebook), and People’s Mojahedin Organization of Iran – MEK IRAN – YouTu
Tags: Iran Economy, Iran human rights, Iran Terrorism, Iran Uprising, Maryam Rajavi, Regime Change