Iran Must Brace For 67% Inflation In Coming Year
Hassan Sadeghi, the head of the Union of Veteran Workers, has predicted a 67% inflation rate in the coming year (beginning March 20) as the economy spirals downward.
Hassan Sadeghi, the head of the Union of Veteran Workers, has predicted a 67% inflation rate in the coming year (beginning March 20) as the economy spirals downward.
He warned of the likelihood of intensified protests as a result of the economic crisis unless salaries are increased and policies more suited to Iran are implemented.
"In the past year, the prices of consumer goods in Iran have skyrocketed several times, but wages have remained stagnant,” he pointed out as more and more Iranians fall below the poverty line.
In a bold statement, Sadeghi blamed government inefficiency. "This year, they [the government] have budgeted based on taxation, so people are bracing for a 67% inflation. This is while even if wages are doubled, it will have no effect on reducing inflation."
Furthermore, Sadeghi accused the government of “copy paste versions” of IMF policies without considering Iran's unique economic challenges.
"They don't care about the principle that we are a third-world country and our people earn in rials but spend in dollars. The government should not implement IMF policies with Iran's flawed and inefficient economic structure,” he added.
Iran's inflation trends have been on a rise in recent years, with rates soaring from around 10% in 2016 to nearly 50% in 2023.
Their defiant statements and widespread criticism of the clerical government stand in contrast to far-fetched claims by Supreme Leader Ali Khamenei and other officials of having been able to control inflation and make progress on various fronts.
Families of victims commemorated Norouz (Nowruz) by honoring the memory of those killed by security forces, gathering at the graves of their loved ones and issuing messages calling for resistance and perseverance for freedom and justice in Iran.
The mother of Reza Moazami Goudarzi, one of the victims of the November 2019 protests, wrote on Instagram that she is celebrating Norouz in memory of all the heroes who have sacrificed their lives for freedom during 45 years of Islamic rule. Goudarzi was shot in the back by security forces in November 2019 in Andisheh city, near the capital Tehran, and died at the age of 19 because hospital staff refused to treat him in fear of government reprisal.
Regime’s security forces and vigilante gunmen killed at least 1,500 citizens during a week of anti-government protests in 2019.
The father of Mehrshad Shahidi, another victim of the 2022 protests, released a video saying that he will be at his son's grave on Wednesday with other family members to celebrate Norouz.
The parents of Mahsa Zhina Amini, also took to Instagram to welcome the new year by honoring the memory of their daughter. Her death in the custody of morality police in 2022 sparked the "Woman, Life, Freedom" movement and widespread protests in Iran that continue to this day. Taking a metaphorical tone, her parents described spring as "liberation from the tyranny of winter."
Quashing the protests, government forces killed more than 550 people, including 68 children. The mother of Hananeh Kia, one of the victims, wrote in a message how she is longing for her child and expressed hope for "bright days" ahead. Hananeh Kia, 23, was shot and killed by government forces in September 2022, during the first week of the uprising.
Meysam Pirfalak, the father of Kian, a 9-year-old boy who became one of the icons of the anti-regime revolt, also released a video message for Norouz. Kian was shot and killed by government forces in November 2022, while he was in the family car with his parents and younger brother on their way back home in Izeh, in southwestern Iran.
In addition to people in Iran, several opposition figures issued Norouz messages almost with a similar theme, wishing an end to the Islamic Republic and the freedom of the country.
Iran’s exiled prince Reza Pahlavi and his mother, the last queen of Iran Farah Pahlavi, in separate messages, emphasized the importance of Iranian unity and solidarity “to overcome darkness.”
Reza Pahlavi described the new year as a year of pragmatism, “a year of rolling up sleeves of determination and putting on boots of resilience; a year of overcoming obstacles and uniting for solutions; a year of advancing from hope to belief; a year of launching a new plan."
He expressed hope that light will prevail over darkness and Iran will regain its past freedom and glory, saying, “For forty-five years, we have been in our long winter night, but today even the guards of Zahhak (a tyrannical king in Iranian mythology and a metaphor for Ali Khamenei) smell the scent of spring. The echo of Iran's footsteps towards liberation has terrified their dark hearts."
Iran’s Supreme Leader Ali Khamenei referred to the plight of recent flood victims in his New Year address but emphasized that "the most tragic of all was the tragedy that occurred in Gaza – an event that holds great importance in our international affairs. We did not experience anything more tragic than that this year.”
Iran-backed Islamist group Hamas invaded Israel on October 7 and killed 1,200 mostly civilians, taking 240 hostages. Israel's ongoing offensive to dismantle Hamas has resulted in thousands of civilian casualties in Gaza.
Many Iranians, however, oppose the regime’s support for Palestinians and other extraterritorial causes, while Iran is becoming poorer and tens of millions suffer as a result.
Despite the dire economic situation, with inflation hovering at 50 percent and the national currency in freefall, Khamenei claimed there was progress in the country. "If growth in domestic production is pursued in a suitable manner, many of the country’s key economic issues, such as inflation, employment, and the value of our national currency, will be solved in a desirable manner," he said.
Khamenei also designated the new Iranian calendar year as the year of "Surge in production through people's participation." He has been designating slogans for each year in the past 35 years, with most of the slogans focusing on economic growth which has hardly materialized. Iranian officials and organizations try to portray their activities as if they are in line with the Khamenei-designated motto. President Ebrahim Raisi delivered a New Year address, boasting that despite projections, the country's inflation rate did not surpass 100 percent.
