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Analysis

Iran: Subsidy Cuts May Fuel Inflation and Civil Unrest

By Maya Senussi and Rachel Ziemba

On December 19, after a three-month delay, cuts in energy and food subsidies came into effect in Iran. This necessary measure, a means to mend the country’s fragile fiscal position and reduce excess consumption of fuel, will put an additional burden on residents by increasing costs of staple foods and…

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