Inflation has reached its highest level in the last 23 years under the clerical regime in Iran.
According to the Iranian Statistical Center, the average annual inflation rate in Iran has reached 40.4%, the highest rate in the past 23 years.
According to the FDD, the new inflation rate is much higher than the 2013 inflation rate of 36.2%, before the nuclear deal was announced.
“Since April 2018, Iran’s twelve-month average inflation has risen steadily from 8 percent in April 2018 to 40.4 percent in July 2019 – a level not reached since July 1996, when Iran’s 12-month average inflation rate hit 39.5 percent,” the FDD wrote.
The data suggests that there may still be another wave of rising inflation. Other major economic developments also paint a very grim picture for the regime’s future.
Since May 2019, when the US revoked all oil wavers for Iran’s oil consumers, Tehran’s oil exports declined dramatically.
Meanwhile, the US maximum pressure campaign and unprecedented sanctions on Iranian banks have made it difficult to recover export earnings, decreasing Tehran’s access to hard currencies.
Recently First Vice-President Eshaq Jahangiri also acknowledged widespread corruption and Iran’s dire economic conditions.
“Unfortunately, in the past 40 years, the country’s economic growth has been slow and fluctuating, and especially in the past 10 years, our investment situation has not been good,” he said on August 21 adding that this was an “Achilles heel” for the economy.
“In addition to all these problems, the widespread corruption in the country is what makes people suffer the most,” the First Vice President said in comments carried by state-run media.
Jahangiri also cited US sanctions adding that “the US has imposed the toughest sanctions in its history” against Iran, aiming to bring down Iran’s economy.