Inflation increasing in Iran

Reuters

A customer buys Iranian gold coins at a currency exchange office in Tehran's business district October 24, 2011.

Article Highlights

  • Increasing inflation continues to take its toll on ordinary Iranians, making it increasingly difficult to put food on the table.

    Tweet This

  • Given the Iranian rial’s precipitous fall against most major currencies, goods imported into Iran could well have doubled if not tripled in price.

    Tweet This

Increasing inflation continues to take its toll on ordinary Iranians, making it increasingly difficult to put food on the table. Every Iranian household buys bread and tea. According to the chart that follows the original Persian article, the price of bread has increased 38.8 percent, and the price of tea is up over 58 percent. Vegetables and fruit prices increased 70.5 percent and 46.7 percent respectively. Curiously, rice, an Iranian staple, is not included in the statistics provided; last year, the Iran Statistics Center itemized inflation among several different varieties of rice.

The other products most impacted by inflation over the past year include dairy products (51.8 percent), fish (66.7 percent), and tobacco (92.8 percent). Taking a summer vacation, even inside Iran, has also gotten more difficult: Hotel and restaurant prices are up 33.7 percent over last year.

While the official exchange rate—set by the Central Bank of Iran—has remained relatively steady, fluctuating between 12,200 and 12,300 Iranian rials to the U.S. dollar, the gap between the dollar and the rial on the black market—the rate most Iranians use on a daily basis—has grown from approximately 20,000 rials to the dollar in May 2012 to 35,000 rials to the dollar a year later.

Importantly, most of the items for which the Iranian government has published data are for goods and services produced or conducted inside Iran. Given the Iranian rial’s precipitous fall against most major currencies, goods imported into Iran could well have doubled if not tripled in price.

While the Iranian government continues to insist that sanctions do not bite—and, indeed, inflation inside may be rooted more in poor management than sanctions—the continued inflation in basic foodstuffs and commodities suggest that life in Iran is becoming steadily more difficult.

Also Visit
AEIdeas Blog The American Magazine
About the Author

 

Michael
Rubin

What's new on AEI

AEI Election Watch 2014: What will happen and why it matters
image A nation divided by marriage
image Teaching reform
image Socialist party pushing $20 minimum wage defends $13-an-hour job listing
AEI on Facebook
Events Calendar
  • 27
    MON
  • 28
    TUE
  • 29
    WED
  • 30
    THU
  • 31
    FRI
Monday, October 27, 2014 | 10:00 a.m. – 11:30 a.m.
State income taxes and the Supreme Court: Maryland Comptroller v. Wynne

Please join AEI for a panel discussion exploring these and other questions about this crucial case.

Tuesday, October 28, 2014 | 9:30 a.m. – 12:15 p.m.
For richer, for poorer: How family structures economic success in America

Join Lerman, Wilcox, and a group of distinguished scholars and commentators for the release of Lerman and Wilcox’s report, which examines the relationships among and policy implications of marriage, family structure, and economic success in America.

Tuesday, October 28, 2014 | 5:30 p.m. – 7:00 p.m.
The 7 deadly virtues: 18 conservative writers on why the virtuous life is funny as hell

Please join AEI for a book forum moderated by Last and featuring five of these leading conservative voices. By the time the forum is over, attendees may be on their way to discovering an entirely different — and better — moral universe.

Thursday, October 30, 2014 | 2:00 p.m. – 3:00 p.m.
A nuclear deal with Iran? Weighing the possibilities

Join us, as experts discuss their predictions for whether the United States will strike a nuclear deal with Iran ahead of the November 24 deadline, and the repercussions of the possible outcomes.

Thursday, October 30, 2014 | 5:00 p.m. – 6:15 p.m.
The forgotten depression — 1921: The crash that cured itself

Please join Author James Grant and AEI senior economists for a discussion about Grant's book, "The Forgotten Depression: 1921: The Crash That Cured Itself" (Simon & Schuster, 2014).

No events scheduled today.
No events scheduled this day.
No events scheduled this day.
No events scheduled this day.
No events scheduled this day.