NCRI – The purchasing power of workers in Iran has been halved in the past year due to low wages and soaring inflation in the economically battered regime.
Prices of many of the 18 most common items bought by working families have doubled causing a slump in spending power of between 70 and 100 per cent, the state-run media reported.
One report said: “Iran’s 30 million working families form the largest part of the population, and they have experienced the biggest drop in purchasing power.”
Low wages and the government’s failure to offer recovery programs was the main cause of workers’ inability to cover monthly bills such as house rent, food, clothing, their children’s education and medical expenses. Many are also forced to hold down multiple jobs to make ends meet, state media reported.
Inflation in Iran has also risen 45 percent in the month up to June 21 compared to the same month a year earlier, according to reports.
The Mehr news agency said: “The Central Bank has announced the price index for goods and consumer services. For the month of Khordad this year (ended June 21), the inflation rate reached 45.1 percent.”
The head of the parliament’s research center said last week that the inflation has soared to 61 per cent. Kazem Jalali blamed the exchange rate and bad management of monetary policy by ministers for the rocketing prices.
Inflation has resulted in steep price increases of staple foods and fuel and the prospect of finding a job is increasingly difficult because of slumping investment and productivity.
Independent analysts say the official figures do not show the real picture and some estimate actual inflation is more than double the official figures.