IRAN is suffering from hyperinflation with prices soaring at a monthly rate of around 69.6 per cent, a senior US economist calculated yesterday.
The rial, Iran’s currency, has plummeted since America and the European Union began economic sanctions against the Middle Eastern state due to an ongoing dispute over its nuclear programme.
“When a currency collapses, you can be certain that other economic metrics are moving in a negative direction, too,” said Steve Hanke of the Cato Institute in Washington DC. “With a monthly inflation rate this high – over 50 per cent – Iran is undoubtedly experiencing hyperinflation.”
A foreign exchange black market has long existed due to not only the sanctions, but also other currency controls. Hanke used new data from the black market to estimate inflation in Iran.
Other states to have recently experienced hyperinflation include North Korea and Zimbabwe.