Inflation Fuels Anger Toward Ahmadinejad

TEHRAN, Iran (AP) - A sharp rise in inflation has provoked fierce criticism of hard-line President Mahmoud Ahmadinejad—not only from his reformist opponents, but also from senior conservatives who helped bring him to power but now say he is mismanaging the economy.
Ahmadinejad was elected in 2005 on a populist agenda promising to bring oil revenues to every family, eradicate poverty, improve living standards and tackle unemployment. Now he is being challenged for his failure to meet those promises.

Reformists and even some fellow conservatives say Ahmadinejad has concentrated too much on fiery, anti-U.S. speeches and not enough on the economy—and they have become more aggressive in calling him to account.

In a rare gesture, Ahmadinejad admitted last week that inflation existed but blamed it on his predecessors, the conservative-dominated parliament, state-run media and bank managers who misused their power and printed too many bank notes.

"Inflation has its roots in the past," Ahmadinejad said in a televised speech.

His comments were denounced from all sides, with economists and some fellow conservatives saying it is his policies that have led to higher prices.

Ahmadinejad's critics point out that more than 80 percent of Iran's government revenues come from crude exports and that inflation has risen under him despite sharp increases in oil prices to near $100 per barrel currently. Read more.