RFERL:

At the end of the Iranian year on March 20, inflation figures heralded a tough time ahead for ordinary Iranians, as price rises neared 50 percent in the last 12 months.

From March 2018 to March 2019, goods and services became 47.5 percent more expensive, in what is the worse inflation number in the past five years, Iran Statistical Center reported on March 21.

But what is even more alarming, inflation for food and drinks is reported to be 73.2 percent in the same 12-month period. This is the most important segment of a working-class family’s needs, when the minimum wage has increased very little in comparison with inflation.

The main reason for the high rate of inflation in Iran is the devaluation of its currency. The rial has lost its value four-fold in relation with the dollar and other major currencies in 12 months. This means imports of raw materials for production become more expensive, although the government subsidizes “essential commodities”, by providing cheap dollars to selected importers.

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