Page 5 - IRANRptFeb22

elementary schools in the Iranian capital in response to a growing wave of coronavirus infections largely of the Omicron variant.
The Omicron situation across Iran has become so bad so rapidly that several regions including that of the capital are now classified as “red” by the Health Ministry.
On January 31, at least 47 of the 250 members of Iran’s parliament tested positive for the virus, forcing the closure of the legislature. At least 10 lawmakers with coronavirus infections were hospitalised.
The Iranian government has ordered immediate imports of rice and potatoes to help tackle rising food prices on the domestic market, Press TV reported on February 3. Some premium varieties of Iranian rice hit record price highs of around Iranian rial (IRR) 1.15mn rials. Annual inflation is running at slightly more than 40% in Iran but there have been local reports of certain essential food items subject to inflation of much more than that figure.
Iran on January 27 announced annual inflation of 42.4% in the 10th Persian month (ended January 20), while on the same day analysts were digesting a new report on how price growth in the country has been “weaponised” by the imposition of US sanctions. The consumer price index (CPI) inflation figure released by the Statistical Centre of Iran (SCI) was a modest improvement on the 43.4% recorded in the 9th Persian month. Food, beverage and tobacco prices moved up 1.7% m/m, while services and non-food prices gained 2.7% m/m.
A group of Iranian shareholders who suffered losses in recent months held a protest outside parliament in Tehran on January 20, saying a decline in stock prices was due to government policies. Some of the protesters chanted slogans against President Ebrahim Raisi, calling him ‘a liar.’ Raisi and his cabinet ministers have pledged to deal with the stock market swings, partly caused by uncertainty over the fate of the ongoing Vienna talks between Iran and major powers aimed at reviving the 2015 nuclear deal.
Furthermore, Iran this summer suffered its worst drought in 50 years. The country faced ongoing protests over the drying up of a river and water shortages. Mismanagement by the authorities has been cited as a big factor in water crises seen in many parts of Iran.
The International Grains Council (IGC) has cut its forecast for 2021/22 global wheat production, with a downgraded outlook for the crop in Iran a particular concern. Iran’s wheat imports are set to reach a record level in the Persian calendar year ending March amid the impact of severe drought on domestic crops.
Meanwhile, Iran has penciled in 8% economic growth and oil exports running at 1.2mn b/d at a price of $60/barrel in its draft state budget. President Raisi presented the proposed budget on December 12 to parliament on the assumption that US sanctions would continue. The growth projects include 4.5% in investment growth and 3.5% in productivity growth.
With US sanctions still in place in an effort at keeping Iranian oil of world markets, Iran has been relying on China turning a blind eye to American demands to import substantial amounts of Iran’s crude on the grey market.
5 IRAN Country Report February 2022 www.intellinews.com