Cost of Living in Iran Increased by 20-50 Percent

Rooz Online

According to government statistics, the rate of inflation dropped in the Persian calendar year that is ending on March 21th. But a look at media news agency reports along with the pronouncements made by authorities, cost of living continued to rise in the last twelve month period. In fact, a new wave of price hikes is expected to hit the pockets of ordinary Iranians in the coming year that begins on March 21st.

The last report of the Iran Statistical Center puts the rate of inflation for the Persian calendar year of 2013 (which ends on the Spring equinox on March 21th) at 2.15 percent, the report says the price of essentials such as water, electricity, gas rose between 25 to 30 percent while others such as break and housing rentals went up by 25-40 percent. According to the report, in the month of Esfand (February 21 to March 21) inflation stood at 14.4 percent compared to the same month the year before. The index for the group comprising of food, drinks and smoking in this month stood at 6.240 which was 5 percent less when compared to the previous month. The food index alone stood at 236.6 which was a fall of 6 percent compared to the previous month.

The index for non-foods in the month of Bahman (January 21 to February 20th) stood 7.191 which was 3 percent higher than the previous month. The rise in the prices of this category compared to the same month last year stood at 5 percent.

These figures were published by the center after the government had raised the price of water and electricity by 20 and 24 percent respectively, as decided jointly with the Majlis.

Mehr news agency wrote that on February 25th “The first vice-president had instructed the relevant government agencies that supplied these utilities to the public to raise the price of water by 20 percent. Prior to that the government had unexpectedly raised the price of electricity by 24 percent.”

Alireza Daemi, the deputy minister at the ministry of energy had earlier said, “The government only allowed a 24% hike in the price of electricity starting March 2014. The increase in the price of gas too by 20-30% was sanctioned from March of 2014.

During the same period the price of bread also increased. But while the government had only allowed a 30 percent hike, in reality the price to the consumer rose by 40 percent. Commenting on price hikes of basic commodities, Jam News wrote that “While officials had talked about an increase of up to 30% in the price of bread, in reality the prices announced by the responsible Tehran boards amounted to a 40% hike.”

In the world of transportation and taxi fares which are regulated by the government, the rate of taxi fares was announced to rise for the March-2014 to March-2015 period by at 25%.

Prices of fruit in 2014 rose by an unbelievable 50.7%, according to official statistics.