Iran Faces Escalating Inflation Risk as Rial Continues to Depreciate

An Iranian parliamentarian warned that the rial’s ongoing devaluation could trigger a new wave of inflation, describing the government’s economic management as “disastrous.” Official statistics show July’s year‑on‑year inflation at 87.9% and an annual rate of 66%.

Economist Hossein Raghfar told state‑run ILNA that the policy of repeatedly raising the exchange rate is pushing the economy toward hyperinflation, even though monthly rates have not yet hit the 40‑50% threshold. He echoed earlier remarks by economist Masoud Nili, who said Iran is at the “station before hyperinflation.” Raghfar noted that many consumer goods have become more than 100% more expensive in recent months, severely eroding household purchasing power. The government has offered little concrete policy response, urging the public simply to show resilience amid the crisis.