IMF: Iran Inflation Could Hit 40 Percent

Iran’s economy is expected to shrink for the second consecutive year, said the IMF. (AP)
Iran’s economy is expected to shrink for the second consecutive year, said the IMF. (AP)
TT
20

IMF: Iran Inflation Could Hit 40 Percent

Iran’s economy is expected to shrink for the second consecutive year, said the IMF. (AP)
Iran’s economy is expected to shrink for the second consecutive year, said the IMF. (AP)

Iran’s economy is expected to shrink for the second consecutive year and inflation could reach 40 percent, an International Monetary Fund senior official said, as the country copes with the impact of tighter sanctions imposed by the United States.

Washington, which re-imposed sanctions against Iran’s oil exports last November, this month demanded buyers of Iranian oil to stop purchases by May or face sanctions, ending six months of waivers which allowed Iran’s eight biggest buyers to continue importing limited volumes.

Iran’s economy shrank by 3.9 percent last year, according to IMF estimates, and is expected to shrink by 6 percent in 2019, Jihad Azour, director of the IMF’s Middle East and Central Asia department, told Reuters adding, however, that the projection preceded the latest elimination of waivers.

“Clearly the re-imposition of sanctions and the removal of the waivers will have additional negative impact on the Iranian economy both in terms of growth and in terms of inflation, where inflation could reach 40 percent or even more this year,” he said.

US sanctions against Iran have denied its government more than $10 billion in oil revenue, a US official said earlier this month.

The Iranian currency, the rial, lost more than 60 percent last year, disrupting Iran’s foreign trade and boosting annual inflation.

The Iranian rial official rate is set at 42,000 rials to the US dollar, but its market rate stood at around 144,000 against the US dollar on Sunday, according to foreign exchange website Bonbast.com.

Iran should work to eliminate the gap that currently exists between the market exchange rate and the official exchange rate, said Azour.

“By aligning the market and official rates this will help tame and control inflation and will reduce pressure on the exchange rate.”

The currency’s slide, from levels around 43,000 at the end of last year, has eroded the value of ordinary Iranians’ savings, triggering panic buying of dollars.

The weak currency and galloping inflation have been a complaint of sporadic street protests since late 2017.



27 Inmates are Still at Large Following an Israeli Airstrike during the 12-day War, Iran says

In this photo taken Tuesday, June 24, 2025, rescuers search through the rubble of a damaged section of Evin Prison following an Israeli strike the day before, in Tehran, Iran. (AP Photo/Mostafa Roudaki/Mizan News Agency)
In this photo taken Tuesday, June 24, 2025, rescuers search through the rubble of a damaged section of Evin Prison following an Israeli strike the day before, in Tehran, Iran. (AP Photo/Mostafa Roudaki/Mizan News Agency)
TT
20

27 Inmates are Still at Large Following an Israeli Airstrike during the 12-day War, Iran says

In this photo taken Tuesday, June 24, 2025, rescuers search through the rubble of a damaged section of Evin Prison following an Israeli strike the day before, in Tehran, Iran. (AP Photo/Mostafa Roudaki/Mizan News Agency)
In this photo taken Tuesday, June 24, 2025, rescuers search through the rubble of a damaged section of Evin Prison following an Israeli strike the day before, in Tehran, Iran. (AP Photo/Mostafa Roudaki/Mizan News Agency)

Iran said Tuesday 27 inmates were still at large after an Israeli airstrike last month targeted Evin prison in the north of the capital, Tehran, local media reported.

The airstrikes were part of Israel’s 12-day bombardment of Iran that killed about 1,100 people. while 28 were left dead in Israel in Iranian retaliatory strikes, The Associated Press said.

Judiciary’s news website, Mizanonline, quoted spokesman Asghar Jahangir as saying 75 prisoners had escaped following the strike, of which 48 were either recaptured or voluntarily returned. He said authorities will detain the others if they don't hand themselves over.

Jahangir said the escapees were prisoners doing time for minor offenses.

Iranian officials said the Israeli strike killed 71 people, but local media reported earlier in July that 80 were left dead at the time, including prison staff, soldiers, inmates and visiting family members. Authorities also said five inmates died.

It’s unclear why Israel targeted the prison. The Israeli Defense Ministry had said that 50 aircraft dropped 100 munitions on military targets “based on high-quality and accurate intelligence from the Intelligence Branch.”

The New York-based Center for Human Rights had criticized Israel for striking the prison, seen as a symbol of repression of any opposition, saying it violated the principle of distinction between civilian and military targets.