The increase in subsidy cards and wages under the current conditions is not recognized as an inflationary factor at all. In fact, the structural roots of inflation and bank imbalances are far more complex than the government's short-term policies. These issues have become a fundamental challenge for the Iranian economy in recent years and require deeper examination.
Analysis of the Roots of Inflation
Inflation is a phenomenon that is typically defined as a continuous rise in prices. However, what needs to be considered are the roots of this phenomenon. In Iran, factors such as severe imbalances in the banking system, dependence on oil revenues, and lack of diversity in the economy are among the main causes of inflation. Additionally, political and economic instability directly affects prices.
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Effects of Increasing Subsidy Cards and Wages
The increase in subsidy cards and wages is considered a measure to support vulnerable groups. These policies can lead to improved living conditions for families and, at the same time, help increase people's purchasing power. According to conducted analyses, these actions cannot be regarded as a factor for exacerbating inflation. Rather, these policies can act as part of short-term solutions to economic crises.
Under current conditions, serious attention must be paid to the structural roots of inflation, and economic policies should be directed towards fundamental reforms. These reforms include improving the banking system, reducing dependence on oil revenues, and creating diversity in the economy. In this context, the increase in subsidy cards and wages should be used as a complementary tool alongside these reforms, not as an independent solution.
Ultimately, to tackle economic crises and reduce inflation, a comprehensive and holistic approach is needed. Only by focusing on structural problems and adopting the right policies can we hope for an improvement in the economic and social situation of the country.
Read more: The International Monetary Fund predicts Iran's economic growth for next year · Minister of Agriculture: We have not yet agreed on the amount of the increase in subsidy cards
