New Delhi: Iran’s economic crisis is hitting everyday life hard, with food prices surging, the rial falling to record lows and long queues forming at petrol stations. The United States has also begun imposing new sanctions under Operation Economic Outcast while Iran struggles with high inflation, shortages and falling purchasing power.
Iran’s Statistical Centre said annual inflation has reached 84.4%. The average inflation rate over the previous 12 months was around 65%.
Such a move brings back memories of November 2019, when petrol prices were suddenly increased by 50%. Damage caused by Israeli attacks on two of Tehran’s three main oil depots has also been reported.
He said that if he tries to stop the practice, those involved will turn against him. Iranian government spokesperson Fatemeh Mohajerani said poverty data would be published in future only with permission from the National Security Council. The government has blamed panic buying and rumours of a possible hike in fuel prices for the rush to petrol stations. The government has been considering ways to reduce its expensive fuel subsidies and raise petrol prices. The price hike was followed by several days of violent protests. That experience has made any new surge in fuel price a difficult decision for the government at a time when households are struggling to make ends meet. Fuel smuggling has become another issue for the Iranian government. Sakak Esfahani, a deputy to Iran’s president, claimed that people from both political factions in the country are involved in fuel smuggling. His remarks led to calls for President Masoud Pezeshkian to investigate the issue. The economic problems are also affecting the way the government plans to release poverty data.
