Iran Seeks to Curb Inflation, Expand Food Subsidies Amid US Sanctions

Source: Bloomberg

Iran Seeks to Curb Inflation, Expand Food Subsidies Amid US Sanctions
  • 26 Oct, 20:48
  • Iran

Iran is seeking to ease economic pressure from US and Western sanctions by curbing inflation and increasing food voucher allowances for households, government spokeswoman Fatemeh Mohajerani said Monday.

Mohajerani said inflation was rooted in broader macroeconomic conditions and could not be addressed through short-term measures, The Caspian Post reports, citing Anadolu Agency.

“We are trying to counter the economic pressure imposed on us by the West and the US by controlling the pace of inflation on the one hand and taking measures to improve people’s livelihoods, including increasing food voucher allowances, on the other,” she said.

The government is seeking to expand its electronic food voucher program, known as Kalabarg, which provides eligible households with subsidies to purchase essential food items.

Iran’s economy has come under growing pressure from US sanctions, currency depreciation and rising consumer prices.

In August, Washington launched a new economic pressure campaign, dubbed Operation Economic Outcast, targeting Iran’s oil exports, financial transactions and access to international markets.

The US also reinstated its naval blockade of vessels traveling to and from Iranian ports in July, further restricting Tehran’s oil trade.

Iranian Central Bank Governor Abdolnaser Hemmati said in August that the country’s oil exports had fallen to zero amid the conflict and sanctions.

The International Monetary Fund projected in August that Iran’s economy would contract by 6.1% in 2026, while average annual inflation would reach 68.9%.

The economic difficulties have been compounded by the military conflict between Iran and the US, which began in February, as well as continuing disagreements over sanctions relief and security arrangements in the Strait of Hormuz.

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Iran Seeks to Curb Inflation, Expand Food Subsidies Amid US Sanctions

Iran is seeking to ease economic pressure from US and Western sanctions by curbing inflation and increasing food voucher allowances for households, government spokeswoman Fatemeh Mohajerani said Monday.