Page 19 - IRANRptJul22

Iran’s industrial production decreased 1.6% y/y in the third quarter of 2021, compared to a rise of 9.1% and 5.8 y/y in the first and second quarters of 2021, respectively.
4.2 Inflation
4.2.1 CPI dynamics
Iran’s wheat subsidy cut triggers dramatic flour price rise ‘that could spark social unrest’
Iran’s official annual inflation rose 13.2 pp to 52.5% in June from 39.3% in May, the Statistics Center of Iran (SCI) announced on June 28.
The blow to Iranian consumers came a day after Iranian oil and petrochemical workers began a strike for higher wages, with their industries becoming the latest of several in Iran to be plunged into turmoil by cost-of-living protests. Teachers, stone factory workers, public employees, taxi drivers and bus drivers are among groups that have lately taken to the streets protesting at poor pay and work conditions, while there have also been substantial protests at low pensions mounted by pensioners across the country.
The Coordinating Council of Protests of Oil Contract Workers was reported by Radio Farda as saying that employees at the Tehran Oil Refinery were continuing their protest against an increase in working hours and low wages, while drivers and workers at the West Oil and Gas Exploitation Company gathered at the company's location in the western city of Dehloran saying they hadn't been paid in months.
Many of the protests have been met with aggressive security crackdowns. According to SCI inflation report, price growth in food, beverages and tobacco grew by 32.2 pp to 81.6% in June, while nonfood goods and services prices moved up by 2.8 pp to 36.8%.
A dramatic rise in the price of flour in Iran is reportedly leading to concerns that the authorities' recent decision to halt subsidies for imported wheat could lead to social unrest.
The government ended subsidies for imported wheat on May 1. The cost of flour subsequently soared by around 500%. The price is expected to rise further, meaning even more pain for consumers dealing with rising bread, pasta and other flour-based product price rises.
RFE/RL reported on May 6 that the Student Basij, a subgrouping of the Basij
19 IRAN Country Report July 2022 www.intellinews.com