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.

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.