Given the general rise in prices of goods and services, the 49.4-million-rial ($192) living wage set in the month ending March 2020 for a 3.3-member household, has reached 62.49 million rials ($243) in the month ending Aug. 21, indicating a 26.5% rise month-on-month, according to Faramarz Tofiqi, a top advisor to Representatives Assembly of Iranian Workers.
After factoring in the share of healthcare spending, the living wage rises from 52.64 million rials ($204) to 64.34 million rials ($250) over the same period under review.
“If you consider housing expenditure in large cities and economic-industrial towns, the living wage will exceed 75 million rials ($291),” Tofiqi was quoted as saying by ILNA.
“The basis for calculating living wage is a month’s food basket cost, which data are provided by the Statistical Center of Iran and Pasteur Institute of Iran.”
A living wage refers to a theoretical income level that allows an individual or family to afford adequate shelter, food and the other basic necessities. The goal of a living wage is to allow employees to earn enough income for a satisfactory standard of living and to prevent them from falling into poverty.
Economists suggest that a living wage should be substantial enough to ensure that not more than 30% of it are spent on housing.
The average goods and services Consumer Price Index in the 12-month period ending August 21, which marks the end of the fifth Iranian month, increased by 25.8% compared with the corresponding period of last year, latest data released by the Statistical Center of Iran show.
SCI had put the average annual inflation rate for the preceding Iranian month, which ended on July 21, at 26.4%.
The consumer inflation for the month under review (July 22-Aug. 21) registered a year-on-year increase of 30.4% compared with the similar month of the previous Iranian year. The year-on-year inflation of the month ending July 21 has been put at 26.9%.
The overall CPI (using the Iranian year to March 2017 as the base year) stood at 235.9 in the month under review, indicating a 3.5% rise compared with the month before.
SCI put average annual inflation for urban and rural areas during the month under review at 25.9% and 25.4%, respectively.
CPI registered a year-on-year increase of 30.6% for urban areas and 29.6% for rural areas in the month ending August 21.
The overall CPI reached 234.7 for urban households and 242.5 for rural households, indicating a month-on-month increase of 3.5% and 3.2% for urban and rural areas, respectively.
The highest monthly growth in the index among 12 groups of the basket of consumer goods and services purchased by households in the Iranian month ending Aug. 21 was recorded for “furniture, home appliances and their maintenance” with 5.9% and the lowest monthly growth for “health and treatment” and “communications” groups with 1.7%
The highest and lowest year-on-year inflation in the month under review was posted for transportation (65.1%) and communications (12.5%) and the highest and lowest annual inflation was registered for transportation (47.2%) and communications (6.4%).
