Iranian president Mahmoud Ahmadine-jad continues to face protests at home and the possibility of international sanctions abroad, but the biggest threat to his rule is something more banal: inflation. Iran's official inflation rate has now reached 13.5 percent, but the actual rate could bo twice as high. And it looks likely to get worse. Come spring, the government plans to stop subsidizing basic goods andwill instead give cash directly to poor families. That plan, as well as Ahma-dinejad's push to give out more loans, will expand the cash supply and likely drive inflation higher still.
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