Central Bank: PPI Inflation at 5.9%

The average Producer Price Index in the 12 months ending May 21, which marks the end of the Iranian month of Ordibehesht, reached 5.9% compared with last year’s corresponding period, the latest report by the Central Bank of Iran showed.  CBI put the preceding month’s PPI inflation at 5.4%.  A year-on-year increase of 8.5% was registered in the index compared with the similar month of last year. PPI (using Iranian year to March 2012) stood at 236.2 in Ordibehesht, almost unchanged compared with the previous month. 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. The central bank’s latest data on the CPI show the goods and services CPI for urban areas in the 12 months to May 21 increased 9.8% compared with last year’s corresponding period.