Daily household purchases in Iran show that the prices of food items are constantly rising.
The price increases are so noticeable that complaints such as “Why do prices keep rising?” are voiced.
From an economic perspective, the reasons for rising prices and inflation vary based on time, location, and the type of product.
In recent years, the price increases of food items in Iran have reached unprecedented levels, with some food items rising in price even more than non-food goods.
According to the Statistical Center of Iran, in August 2023, the inflation rate for the twelve months leading up to that month was 34.8% compared to the same period the previous year.
Severe Price Increases in Food Items Over the Past Year
This means that Iranian households spent 35% more in August 2023 to purchase the same goods and services.
The inflation rate for food items was reported at 30.1%, while for non-food goods it was 37.3%. The highest inflation was seen in red and white meat, which increased by 58.3%.
These figures indicate a sharp rise in food prices and food inflation under the Iranian regime. Annual inflation for fruits and nuts was 32.4%, and for vegetables, it was 25%.
This runaway inflation has caused households to lose their purchasing power day by day. The decline in purchasing power has led to reduced consumption and worsened food security.
In August 2024, the price of mushrooms increased 1.5 times, potatoes 1.1 times, onions 1.7 times, melons 1.6 times, and bell peppers 1.3 times compared to the same period the previous year.
This sharp rise in prices, coupled with stagnant incomes, has caused households to lose their purchasing power and reduce their consumption.
This reduction in consumption is more noticeable among middle- and low-income groups and has negative effects on nutrition and health, especially for children.
In the Iranian regime, solutions such as imports, export bans, stockpiling, and preferential exchange rates have been implemented to regulate the food market.
However, these policies have not been able to significantly reduce prices.
Imports to regulate the market under inflationary conditions are considered a lack of support for domestic producers, reducing their motivation to produce.
On the other hand, export bans impose significant costs on exporters and are considered anti-production policies.
Price controls have also been consistently criticized by farmers and producers due to the lack of an accurate accounting system, leading to reduced social capital and shifts in business practices.
The Iranian regime prefers to intervene in the market rather than regulate it.
These interventions are made without considering their consequences and without designing efficient systems.
Inflation and rising prices of food and non-food items do not seem to be a significant issue for the mullahs’ regime.
