Will Iran's welfare subsidies lead to inflation?

Welfare subsidies in Iran are not the cause of inflation. The reasons for inflation in Iran are:

1, demand pull. The Iranian crisis caused panic, and everyone snapped up supplies to prevent their own supplies from being insufficient once the war started.

2. The supply is insufficient. After several rounds of sanctions in Europe and America, many Iranian enterprises are unsustainable, which leads to the decline of their production capacity, which in turn leads to insufficient supply of Iranian products.

3. Currency over-issuance. After the economic sanctions, Iran's exports declined, the domestic economy was depressed, and the government spent too much money to stimulate demand and investment, resulting in excessive money supply.

4. Rial (Iranian currency) depreciated rapidly. Due to the sanctions imposed by Europe and the United States and the fear of further deterioration of the situation, investors and ordinary people have changed Rial into dollars, euros, gold and so on. The withdrawal of domestic investment funds from abroad led to the rapid depreciation of the rial, which in turn led to a decline in the purchasing power of the rial, an increase in the prices of imported products, and the conversion of foreign exchange generated by exports into more local currencies. To sum up, the current inflation in Iran is caused by.