The Tehran Chamber of Commerce has released a revealing report, ‘Investigation of Household Income and Consumption Patterns in Tehran Province,’ which meticulously examines the changes in household dynamics from 2017 to 2022.

This document offers a detailed view of the economic challenges Iranian families have faced during this period. Income Composition Shift From 2017 to 2022, the structure of household income in Tehran witnessed a significant  change.

Freelance jobs, previously a major income source, have been overtaken by non-work related incomes. This includes pensions, estimated personal housing rents, and incomes from property and land, deposit interest, insurance receipts, and educational grants. The ascendancy of these sources highlights a dependency on sectors often deemed unproductive.

Subsidy Ineffectiveness
A notable finding of the report is the diminished effectiveness of subsidies in household
budgets. Subsidies now contribute zero percent to household income, highlighting the urgent
need to reassess subsidy programs. Furthermore, the income gap between the highest and
lowest income deciles has widened, contradicting the aim of aiding the vulnerable and lowincome groups.

Income Inequality
The report sheds light on severe income inequality. In 2022, the income of the highest income
decile in urban areas was about 30 times that of the lowest decile, while this disparity was 18.3
times in rural areas and 8.6 times in urban Tehran. Such disparities point to growing concerns
over the economic health of different population segments.

Changing Expenditure Patterns
Households have significantly altered their spending habits, now prioritizing essential items.
The largest expenses are housing, fuel, and lighting (38.03%), followed by food and tobacco
(26.5%). Miscellaneous expenses, including personal grooming and social support, account for
11.59%. Despite higher spending on essentials, achieving desired living standards remains
challenging due to increasing costs.

Impact on Education and Well-being
The report highlights a worrying decrease in education spending, especially among lowerincome groups, with a reduction of around 73% for the lowest decile. This trend signals a
potential rise in intergenerational poverty. Additionally, reduced spending on entertainment
and other non-essentials underscores the economic strain on households in maintaining overall
well-being.

Rising Inflation and Economic Challenges
The report underscores the failure of subsidies to improve Iranians’ well-being, challenging the
government’s claims of aiding vulnerable groups amidst soaring inflation and increasing
poverty risk. Economic experts and the public remain skeptical of President Ebrahim Raisi’s
assurances of overcoming these challenges.

Conclusion
In summary, the Tehran Chamber of Commerce’s report provides an insightful analysis of the
economic hurdles faced by households in Tehran province. It highlights key issues like income
composition shifts, ineffective subsidies, widening income inequality, changing expenditure
patterns, and the impact on education and well-being. Addressing these challenges necessitates
targeted policy reforms to foster economic stability and enhance the population’s well-being

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