Half in Poverty, Prices Skyrocket: Iran’s Economy in Crisis

On the eve of Nowruz, amid rising inflation and surging prices, Mohammad Mokhber, the first vice president of Iran’s regime, conceded the government’s inability to control the market. He urged guilds to “take control themselves” in a meeting on Wednesday, March 6th.

This admission contradicts his previous statements. In August, Mokhber had promised to demonstrate successful economic management by year’s end.

According to Iranian news reports, Mokhber stated, “Monitoring the market and controlling prices cannot be achieved solely through government measures and punitive actions.” He emphasized the regime’s expectation that “market participants seriously address price monitoring and control, especially during Nowruz and Ramadan.”

While the US Dollar exceeding 60,000 tomans and the purchasing power of the people is facing a drastic decline, Mokhber said that the, “the worn-down market of Tehran is depleting the spirit of marketers and the people, draining their motivation and hope amidst the challenging economic conditions.”

The volatile exchange rate and price hikes coincide with a domestic media report highlighting a “wide class chasm” in Iran, stating that “half the population lives below the absolute poverty line.”

Currently, Iran’s inflation rate stands at roughly 45%, with the minimum cost of living at least 25 million tomans per month according to government-affiliated labor organizations. Independent estimates by the ILNA news agency place the livelihood basket for workers in metropolitan cities closer to 29 million tomans.

The Statistics Center’s data reportedly reveals a cumulative 145% increase in food prices over the three years from September 2020 to September 2023.

This situation unfolds while the minimum wage for married workers with children subject to labor law remains around 8 million tomans.

It’s crucial to recognize the ongoing inflation, persistent budget deficits, and the inherent and systemic corruption within the regime. Additionally, the regime’s manipulation of economic data serves to conceal its disastrous policies, widespread corruption, and the plundering of the country’s resources.