The point-to-point inflation rate has remained above 30% for 57 straight months – an unprecedented stretch in Iran’s economic records that surpasses even wartime inflationary periods.
The sustained price surges have devastated purchasing power, with the rial losing 99% of its value against the US dollar since 2005.
“What cost 890 rials in 2005 now requires about 81,000 rials, rendering savings worthless and forcing citizens toward hard assets like gold and foreign currency,” the paper wrote.
Economic analysts point to multiple structural causes, including excessive money printing to fund budget deficits, mismanaged banking policies, and the compounding effects of international sanctions.
This inflationary crisis has created severe economic distortions. Manufacturers struggle with unpredictable costs, banks face deposit flight, and households increasingly abandon the national currency for stable-value alternatives.
According to the report, the middle class has been particularly hard-hit, with many families sliding into poverty as wages fail to keep pace with soaring prices.
While economic theory offers clear solutions – including central bank independence, fiscal discipline, and monetary restraint – implementation has proven politically challenging.
The government continues to rely on inflationary financing methods, and policy reforms remain incomplete, the paper concluded.
