CBI: PPI Inflation at 3.5%

The average Producer Price Index in the 12-month period ending December 20, which marks the end of the Iranian month of Azar, reached 3.5% compared with last year’s corresponding period. According to the latest report by the Central Bank of Iran, the preceding month’s PPI inflation stood at 3.3%. A year-on-year increase of 6.8% was registered in the index compared with last year’s similar month. The PPI (using Iranian fiscal year to March 2012 as base year) stood at 231.1 in Azar, indicating a 2% growth compared with the previous month. The importance of PPI lies in its predictive content for the future pattern of Consumer Price Index. Changes in PPI are usually reflected in CPI within a short period of time. The central bank’s latest data on CPI show the average goods and services CPI for urban areas in the 12 months to December 20 increased 8.6% compared with last year’s corresponding period.