Economy, Domestic Economy

UN: Iran Inflation to Reach 14% by Yearend

UN: Iran Inflation to Reach 14% by YearendUN: Iran Inflation to Reach 14% by Yearend

In its latest report on the global economic outlook in 2015-2016, the United Nations has predicted the inflation rate in Iran to reach 14% by the end of 2015, and 12% by the end of 2016. The report goes on to forecast that the economy will grow by 2.5% this year and 2.8% the following year.

The UN projection comes as according to Minister of Cooperatives, Labor and Social Welfare, Ali Rabi’ei, the inflation rate will fall to 12% by the end of the current Iranian calendar year (March 19, 2016). He also predicted the economy to grow 5% by the Iranian year’s end.  

“The Rouhani administration’s initial goal and promise was to restrain the inflation which was as high as 25% in 2013. The government lived up to its promise as the inflation rate currently stands at around 15%,” he was quoted by IRNA as saying. Meanwhile, head of Imports Association of Iran’s chamber of commerce, mine, industry and agriculture, Mohammad Hossein Barkhordar, has warned authorities against a single-digit inflation rate, saying “in essence inflation is needed for economic prosperity.”

“Single-digit inflation is for developed countries with stable economies over the years. But in case of our country, the current inflation rate is acceptable provided that attempts are made to propel the economy,” he told ISNA on Friday, noting that Iran needs to boost its non-oil exports to achieve economic prosperity.

Caption: The inflation rate currently stands at around 15%.