The Iranian government, through Executive Deputy President Mohammad Jafar Qaempanah, has officially admitted resorting to printing money to cover its budget deficit. Inflation reached approximately 52.6% in December 2025, with food prices surging over 66% during certain periods. Two-thirds of this inflation stems from imbalances in Iran’s banking sector, with the remaining third attributed to the budget deficit. President Masoud Pezeshkian’s government proposes capping expenditure growth at just 2% for the fiscal year beginning March 2026, which would represent a significant real-term reduction amid inflation exceeding 50%.
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