Economy, Domestic Economy

Inflation at 17.2%

Inflation at 17.2%
Inflation at 17.2%

Inflation decreased further in the Iranian month of Azar (ending December 21) to 17.2 percent, the Central Bank of Iran said Saturday, though the year-on-year inflation shows an increase for the fourth consecutive month.

One month before that, the inflation rate stood at 18.2 percent. Over the past 16 months, inflation has been decreasing thanks to the easing of sanctions as well as the Rouhani administration’s economic plans.

However, the year-on-year inflation in Azar increased for to 16.7 percent from 15.1 percent in the month earlier. In Sharivar, the Iranian month ending September 22, the y-o-y inflation rate was 14.4 percent.

 The central bank is officially in charge of releasing figures on economic indicators including inflation, but in recent years the Statistical Center of Iran (SCI) has embarked on releasing the reports based on its own research, which in many cases slightly differs from those of the CBI.

Iran has experienced high inflation in recent years, owing both to the former government’s macroeconomic policy – including the introduction of the controversial Subsidy Reform Plan and expansionary funding of housing projects – and the impact of western sanctions, which intensified in 2010 following a dispute over Tehran’s nuclear energy program.

Despite the falling inflation rate, economists believe the trend could come to a halt in early next year, starting March 21, 2015, or at least slow down. However, they believe the economy will keep growing in the upcoming year.

Last week, the central bank announced a 4 percent growth for the economy in the first half the fiscal year. The Iranian economy ended two consecutive years of negative growth in spring, after it grew 4.6 percent.