Domestic Economy

PPI Inflation Hike Alarming

The economic team of President Hassan Rouhani managed to gradually rein in the runaway inflation rates of above 40% inherited from the previous administration and bring it down to single digit territory for the first time after about a quarter century in
PPI Inflation Hike Alarming PPI Inflation Hike Alarming
PPI for the industrial sector increased by 2.3% in Ordibehesht compared with a month before—the highest PPI increase and year-on-year inflation of all sectors to reach 18.6%

The producer price index (using Iranian year to March 2012) stood at 271.2 for the month ending May 21 (the second Iranian month of Ordibehesht), increasing by a four-year high of 1.8% compared with the previous month. 
The monthly PPI growth, as reported by the Central Bank of Iran, hit levels higher than 3% in a month ending May 21, 2014. Since then, it never increased beyond 1.7%, which makes its 1.8% growth alarming. 
The overall CPI (using the Iranian year to March 2017 as the base year) stood at 117.5 in Ordibehesht, indicating a 1.6% increase compared with the previous month. The index registered a year-on-year increase of 9.7% compared with the similar month of last year, the Persian economic daily Donya-e-Eqtesad reported. 


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