Central Bank of Iran: PPI Inflation at 11.3 Percent

The average Producer Price Index in the 12 months ending May 21, which marks the end of the Iranian month of Ordibehesht, increased by 11.3% compared with last year’s corresponding period, the latest report of the Central Bank of Iran said. CBI put the preceding month’s PPI inflation at 10.8%. A year-on-year increase of 14.8% was registered in the index compared with the similar month of last year. PPI (using Iranian year to March 2012) stood at 271.2 in Ordibehesht, indicating a 1.8% rise compared with the previous month. Producer Price Index gauges the price fluctuations of goods and services for the producer whereas Consumer Price Index measures changes in the price level of a basket of consumer goods and services purchased by households. 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. According to CBI, the Consumer Price Index inflation (for urban areas) stood at 9.1% in Ordibehesht.