Domestic Economy

Rural Inflation Halved

Rural Inflation Halved
Rural Inflation Halved

Inflation in rural areas halved to 20.9 percent in the month of Shahrivar (August 23 - September 22) from 41.8 percent in the same period last year, a new report shows.

The report released by the Statistical Center of Iran indicates that inflation in Mordad, one month earlier, was 23.3 percent.

Year-on-year inflation stood at 12.3 percent in Shahrivar, down from 43.1 percent in the same month last year and 12.7 percent in Mordad.               

However, the year-on-year inflation for food, beverages and tobacco industries in rural areas showed a 20.2 percent increase. The inflation showed a 1.1 percent increase compared to the month of Mordad, the report said.

The central bank is officially in charge of releasing figures on economic indicators including inflation, but in recent years the SCI has started releasing reports based on its own research, which in many cases contradicts the CBI data.

According to the central bank, for instance, inflation hit 34.7% in the last fiscal year (March 21, 2013 – March 20, 2014). The figure announced by the SCI was 32.1%.

Iran has experienced high inflation in recent years, owing to both domestic policy – including a subsidy reform plan, related cash handouts and expansionary funding of housing schemes – and the impact of western sanctions, which intensified in 2010 over a dispute with the west on Tehran’s nuclear energy program.