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Iran faces severe economic crisis amid soaring inflation
Iran is facing a severe economic crisis characterized by high inflation and declining purchasing power. Official data indicates an annual inflation rate of 89 percent, with food item inflation exceeding 127 percent. When excluding rent, the inflation rate for goods and services stands at 113.7 percent. This surge has created a significant imbalance for property owners, as the cost of living is growing three times faster than rental income.
Economists warn of the potential for hyperinflation. Expert Mehdi Pazouki cautioned that if current trends—including budget deficits, reduced oil revenues, and international tensions—continue, the annual inflation rate could exceed 600 percent. Meanwhile, economist Morteza Afghah noted that recent slowdowns in inflation acceleration may not reflect improved monetary policy, but rather a collapse in consumer demand due to extreme poverty.
Government officials, including Economic Minister Seyyed Ali Madanizadeh, have defended the nation's economic resilience against international sanctions. He emphasized that the government's strategy focuses on diversifying trade partners and reducing oil dependency, asserting that the economy is being built by the Iranian people rather than being dictated by foreign powers.
Entities
Afghanistan · Central Bank of Iran · Iran · Mehdi Pazouki · Mortaza Afghah · Morteza Afghah · Seyyed Ali Madanizadeh
Claims
What the coverage asserts, and how many sources carry each claim.
- [○ 1 SOURCE] Inflation for goods and services, excluding rent, reaches 113.7 percent. www.rokna.net
- [○ 1 SOURCE] Month-on-month inflation for food items has exceeded 127 percent. ettelaat.net
- [● 2 SOURCES] The annual inflation rate is 89 percent. www.rokna.net · ettelaat.net
- [○ 1 SOURCE] The growth of living costs is three times higher than the growth of rental income. www.rokna.net
- [○ 1 SOURCE] The slowdown in inflation acceleration is due to reduced consumer purchasing power and lower market demand rather than effective monetary policy. aftabnews.ir
- [○ 1 SOURCE] The annual inflation rate could exceed 600 percent if current conditions persist. kayhan.london