Iran’s official inflation rate is reaching new highs. The Statistical Center of Iran (SCI) — the country’s main statistics agency — reported a monthly inflation rate of 12.2% and a point-to-point rate of 52.5% for the Iranian month ending June 21. Both are record numbers. 

The monthly inflation rate reports the changes in the consumer price index — based on a set basket of commodities — within the 30 days from May 22 to June 21. An average Iranian family lost 10% of its shopping power within this 30-day period. Iranian consumers are paying 50% more for the same products compared to spring 2021. The loss of real income and purchasing power for many Iranian families is significant and irreversible.

Alarmingly, inflation does not demonstrate any sign of slowing down. The Iranian calendar's monthly inflation rate has quadrupled in the last month of spring compared to the previous month. The yearly average stands at 39.4%, and it is expected to reach 50% before the end of the Iranian year, or by April 1, 2023. Iranian families are preparing for difficult months to come. Social networks are filled with updates on the prices of rice, dairy, bread and other essential items.

Why is Iran's economy experiencing such high inflation?