Iran Economy NewsIran Economic Collapse, As Explained by State Media

Iran Economic Collapse, As Explained by State Media

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The Iranian economic crisis, caused solely by the mullahs’ corruption and failed policies, is now at a critical point as President Ebrahim Raisi prepares to take office, according to the state-run media.

The Setar-e Sobh wrote that the “most important challenge” Raisi will face is the millions of people living under the poverty line, who will “lose their trust in [the mullahs]” if they’ve not already done so.

The Jahan-e Sanat explained on Sunday that 71% of food items have increased in price to a “crisis level”. The largest month-on-month price increases were pasteurized butter (up 121.4%), chicken (118.8%), and cooking oil (89.0%). This essentially equates to an annual inflation rate of 24%. They described the commodity market’s current state as “deplorable”, saying that the government can’t control the market, which is why commodity prices are rising.

The paper quoted economist Massoud Nilly as saying: “We are really on the verge of severe uncontrollable inflation. Currently, financing, energy supply, services, public budget, social services, and the world exchange system are the six priority problems of the country, whose functions are currently completely disrupted.”

Of course, the reason for the inflation mentioned above is banknote printing, which causes liquidity of nearly  $150 billion.

The Hamdeli daily wrote that the 228 trillion Tomans liquidity growth since 2020 has resulted in 25 items increased in price two to five times, meaning that even very cheap food has become a luxury that most Iranians cannot afford.

Hamdeli wrote: “[Based on] the latest statistics released by the Ministry of Industry, Mines and Trade show that the prices of 25 goods have increased by about two to five times in the second month of spring this year alone. It is said that the prices of some types of livestock and poultry feed, rice, oil, poultry, as well as metal and rubber in May this year have increased by more than 100% and between two to more than five times and 40 goods including meat, rice, dairy, Beans, sugar, and tea became more than 50% more expensive.”

The fact is that the government cannot resolve the economic crises that the country is facing because they are responsible for the wrong policies and corruption that have caused the problems in the first place. The people see this, which is why they boycotted the election in June. They support regime change as the only way to change their fate.

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