{"id":244813,"date":"2021-08-12T13:31:56","date_gmt":"2021-08-12T18:31:56","guid":{"rendered":"https:\/\/www.ncr-iran.org\/en\/?p=244813"},"modified":"2023-02-08T14:42:54","modified_gmt":"2023-02-08T13:42:54","slug":"irans-economic-crises-rising-poverty-and-inflation-rate","status":"publish","type":"post","link":"https:\/\/www.ncr-iran.org\/en\/news\/economy\/irans-economic-crises-rising-poverty-and-inflation-rate\/","title":{"rendered":"Iran\u2019s Economic Crises: Rising Poverty and Inflation Rate"},"content":{"rendered":"

\"Iran-economy-NCRI-MEK\"<\/p>\n

Iran\u2019s economy<\/a> is plagued with a different crisis. According to Iran\u2019s state media, these crises are due to the regime\u2019s corruption and wrong economic policies. Below are some revelations made by the regime\u2019s state media in recent days. Iranians are now grappling with poverty and the Covid-19 outbreak. <\/span>\u00a0<\/span><\/p>\n

According to the state-run Jahan-e\u00a0Sanat\u00a0on August 9, \u201cofficial reports indicate the living conditions of all sectors of society<\/a> have deteriorated.\u201d\u00a0<\/span>\u00a0<\/span><\/p>\n

\u201cThe poverty line last year increased by 38% compared to 2019\u2014high inflation in food and housing. Housing and food are the two only concerns of poor households. This has been cited as one of the main reasons for the increase in the poverty line over the past year,\u201d Jahan-e\u00a0Sanat\u00a0wrote.<\/span>\u00a0<\/span><\/p>\n

According to Jahan-e\u00a0Sanat, \u201cConsidering the living conditions of households in the last decade, it is clear that the growth rate of poverty has been faster than the growth rate of wages in all years, and the wage gap and poverty line reached 145% by the end of the 2010s.\u201d<\/span>\u00a0<\/span><\/p>\n

Jahan-e\u00a0Sanat\u00a0predicted that \u201cconsidering the sharp rise in the poverty line last year, and due to the lack of a commensurate increase in incomes and the lack of high economic growth, it is likely that more households will fall below the poverty line. We will see an increase in the poverty rate this year.\u201d<\/span>\u00a0<\/span><\/p>\n

Among all sectors of society, Iranian workers<\/a> endure more pressure due to the regime\u2019s anti-labor policies. \u201cNow there is a gap of 6 million Tomans between the living expenses and workers\u2019 wage. In the last four months of the year, famine has become dominant in workers\u2019 life. All the workers are in trouble,\u201d wrote the semi-official ILNA News Agency on August 6.\u00a0<\/span>\u00a0<\/span><\/p>\n

\u201cIn this situation, families\u00a0can not\u00a0provide the protein, dairy, and beverages they need. Our economy is becoming like Venezuela. The Venezuelan economy is completely bankrupt. If we cannot solve our problems in these areas, we will follow the same path as Venezuela. Thus, the devaluation of the national currency, inflation, unemployment, etc., will be greater than now,\u201d ILNA adds, quoting a member of Iran\u2019s Chamber of Commerce.\u00a0<\/span>\u00a0<\/span><\/p>\n

\u201cReports show that the point-to-point inflation rate of the manufacturing sector in the industrial sector reached about 95% in the spring of this year, which has been unprecedented over the past decade,\u201d wrote the state-run\u00a0Donyay-e Eghtesad on August 10. In other words, inflation has also reached Iran\u2019s industry, pushing it toward destruction.\u00a0<\/span>\u00a0<\/span><\/p>\n

Is there any solution to Iran\u2019s economic crisis, particularly the inflation rate?\u00a0<\/span>\u00a0<\/span><\/p>\n

According to the state-run Eghtesad-e\u00a0Pouya\u00a0daily on August 12, \u201cControlling inflation and supporting people\u2019s livelihoods is not possible without the approval and implementation of the budget structure reform. According to the International Monetary Fund, Iran\u2019s inflation rate is very different from global inflation and other countries in the world. The increase in inflation has been followed by an increase in the exchange rate and, consequently, an increase in commodity prices in 2019.\u201d\u00a0<\/span>\u00a0<\/span><\/p>\n

The regime has increased the inflation rate by unbridled banknote printing to compensate for the budget deficit. The banknote printing increased the liquidity rate, and since the high amount of liquidity was much higher than the country\u2019s production rate, the inflation rate increased dramatically.\u00a0<\/span>\u00a0<\/span><\/p>\n

\u201cSince the 1990s, the average growth of the monetary base has been above 20%, so statistics show that one of the causes of inflation in the Iranian economy is the growth of liquidity and the growth of the monetary base, along with the increasing liquidity coefficient has a high role,\u201d Eghtesad-e\u00a0Pouya.\u00a0<\/span>\u00a0<\/span><\/p>\n

\"Weekly-Signe-up-logo-1\"<\/a><\/p>\n

In other words, the regime has no solution to Iran\u2019s economic crises because it has created them.\u00a0<\/span>\u00a0<\/span><\/p>\n

The ongoing crises in Iran, whether economic or social, have increased society\u2019s explosiveness. This explosive situation, demonstrated by dozens of protests in recent weeks, has prompted state media to warn officials of another round of major protests.\u00a0<\/span>\u00a0<\/span><\/p>\n

\u201cWe are all in danger. The worrying economic pressure, along with the high number of Covid-19 deaths, and the inefficiency of decision-making institutions, will eventually bring the distressed people to a point where they will have nothing to lose. This is a dangerous process that has been warned about before,\u201d the\u00a0Mostaghel\u00a0daily warned regime officials on Saturday, August 7.<\/span>\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Iran’s economy is plagued with a different crisis. According to Iran’s state media, these crises are due to the regime’s corruption and wrong economic policies. Below are some revelations made […]<\/p>\n","protected":false},"author":19,"featured_media":244815,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10],"tags":[129,130,198,229],"class_list":{"0":"post-244813","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-iran","9":"tag-iran-protests","10":"tag-ncri","11":"tag-irans-economy"},"yoast_head":"\nIran\u2019s Economic Crises: Rising Poverty and Inflation Rate - NCRI<\/title>\n<meta name=\"description\" content=\"Iran\u2019s economy is plagued with a different crisis. 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