According to Iranian labor news agency (ILNA) report dated March 3 local time, a member of the Iranian Parliament's Economic Committee warned that if the rial continues to depreciate under the 'disastrous' economic management of the current government, Iran may face a new round of inflation in the next one or two months.
Hosain Samsamimi said, “Now, the seeds of higher inflation are being sown in the economy. The way the government is managing the economy is disastrous. Either the government doesn’t know how to manage the economy, or it knows the consequences but still continues to do so. This is a betrayal of our society.”
He stated that the expected increase in inflation will be primarily driven by exchange rates, rather than budget deficits or the money supply. The reason is that currency depreciation directly raises commodity prices.
He believes that “now the enemy easily manipulates the foreign exchange market, and through their infiltrated networks, they shift the consequences onto the public’s dining tables, creating conditions for protests. This is exactly the mechanism that is currently in operation.”
Iranian official statistics show that in July this year, the country's inflation rate reached 87.9% compared to the same period last year, and the annual inflation rate was 66%.
