Iranian President Blames Government for Soaring Inflation in Sanctions-hit Economy
Iranian President Masoud Pezeshkian on Thursday criticized his own government for rising consumer prices, increasing pressure on the managers of Iran’s sanctions-stricken economy, according to AFP.
Pezeshkian also noted that the country’s bloated bureaucracy was a major reason for inflation.
“We, the government, are the cause of inflation,” said Pezeshkian during a speech in the western Kurdistan province.
In September, the annual inflation rate stood at approximately 49%, according to the country’s official statistics center.
“We have bloated the government. Everyone has taken a position as a chief, manager or something similar,” he added.
The president mentioned that he is intensifying efforts to cut spending and address soaring inflation.
On September 28, the E3_ Britain, France, and Germany_ reimposed sanctions on Tehran after they claimed that Iran has violated a 2015 deal that aimed at halting it from developing a nuclear weapon.
Consequently, Britain added 71 new designations to its sanctions list, targeting senior officials involved in Iran’s nuclear program along with major financial and energy institutions.
European powers claimed that Tehran is enriching uranium for unpeaceful purposes.
However, Tehran has denied this accusation and said that its nuclear program is for peaceful purposes only.
Severe Economic Consequences
Since the reimposition of sanctions, Iranian economy has been suffering critical consequences that brought it under further strain.
Pezeshkian warned that the widening budget deficit was further fueling the country’s economic strain, calling on government officials to cut non-essential spending to help ease the financial burden on citizens.
In October, the Iranian parliament passed legislation to remove four zeros from the national currency, the rial, in an attempt to stabilize its currency after it has witnessed a remarkable decline.
Under the new plan, 10,000 rials will be converted into a single new rial.
Iranians also began to adopt the use of the Toman for most transactions which means that they drop a zero from the rial and use the resulting figure.
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