A combination of expansionary economic policies, US pressure on the banking system and high money supply growth is fuelling price rises in staple goods in the Islamic republic and hitting the lowest classes hardest.

The research centre run by the conservative-dominated parliament announced last week that inflation reached 22.4 percent in the last Iranian year that ended on March 20, well above the official estimate of 13.5 percent.

A group of 20 lawmakers then published an open statement protesting against the "uncontrolled and unwarranted rise in prices of foodstuffs, hygiene products and consumer goods."

"Officials have to do something against unemployment and the unbridled rise in prices as a matter of urgency," said one deputy, Asghar Gheranmayeh.

According to parliament's research centre, the price rises look set to continue in the current Iranian year, with inflation set to hit 24 percent. Money supply growth -- a key indication of future price trends -- is seen at a colossal 42 percent.

"There is no control on prices. Beauty products are up by 35 percent wholesale. The price of cooking oils has also gone up by 35 percent," said one storeholder who declined to be named.

Shopkeepers used the recent New Year holiday period to raise their prices when people returned from the break, with the price of fruit going up by 21.6 percent in the space of a week.

"A big bottle of Coke has climbed to 7,500 rials from 6,000 and the orange juice that I buy has doubled in price. My hairdresser has also raised his prices by 40 percent," complained one Iranian consumer.

The central bank has also issued a new high-denomination 50,000 rial note (about five dollars) in a move that appears linked to the rising prices, although the authorities deny any connection with inflation.

Economists have long pointed the finger towards the government of President Mahmoud Ahmadinejad, who was elected in 2005 on a platform of helping the poor reap the benefits of Iran's oil wealth.

Since his election, Ahmadinejad has toured the country making promises to local people of new infrastructure and social projects, fuelling a spike in government spending and warnings of inflation.

"Since Ahmadinejad took office in 2005, the focus of economic policies has shifted towards reducing social and regional disparities," the International Monetary Fund (IMF) said in a country report published last month.

"This new approach has used much of the additional revenue from high oil prices to finance higher government spending."

The government denies that its policies harbour inflationary pitfalls, saying that extra revenue from high oil prices has allowed it to splash out on projects.

But further upside pressures on prices could come from a bill agreed by parliament to enforce a rise in Iran's heavily subsidised and extremely cheap petrol prices from early summer.

"There will certainly be an effect from this rise on other products," said Mohammad Reza Behzadian, a former president of Iran's chamber of commerce.

Compounding these domestic factors is Western pressure over Iran's controversial nuclear programme.

The United Nations has already imposed two sets of sanctions, and more significantly for the economy the United States is leaning on European banks to reduce their business with Iran.

"We are now obliged to pay significant amounts of interest (after the US moves) and this has an impact on the prices," said Behzadian.

"The year started badly with a (second) UN Security Council resolution and new sanctions. We will soon have a new resolution. This will undeniably have an effect on prices," he added.

The consequences of the price rises are already being felt by the low-income bracket.

Hundreds of Iranian teachers -- who earn between 200 and 300 dollars a month -- protested outside parliament three times in March, demanding that their salaries be brought into line with those of other government employees.

The protests led to the arrest of at least a dozen teachers in Tehran and the Western city of Hamedan, according to reports, including the head of the Iranian teachers' union, Ali Akbar Baghani.

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