Budget Deficit, Money Supply Will Add to Inflationary Pressures: MRC

In a report on the economy in the next March 2021-22 fiscal year, the Majlis Research Center said inflation will largely be the inability of the government performance in realizing its budget projections and the stabilizing monetary variables.
The research center of the parliament said the manner in which the government finances the budget deficit and controls the monetary base to regulate money supply are key long-term factors impacting inflation.  
High inflation expectations emanating either from budget deficits or increase in forex rates, as short-term causes affecting inflation, determines the speed at which "every single rial increase in monetary base leads to inflation". 
According to the MRC report posted on its website "When inflation expectations are high, long-term bank deposits shift to short-term accounts and money flows to the financial markets, durable goods and ultimately to consumer goods.