Economy, Domestic Economy

Less Inflation Not Equal To Lower Prices

Less Inflation Not Equal To Lower PricesLess Inflation Not Equal To Lower Prices

The first economic development plan was implemented in 1948 for seven years and until now there have been nine other plans, the first two took seven years and the next eight took five years each. Muhammad Baqer Nobakht, the head of management and planning organization said adding that the targeted inflation rate for the next year is attainable based on current economic trends.

He explained the differences between lowering the inflation rate and reduction in prices and said that these two should not be mixed up. Nobakht added that except for a 4-year period from March 2003-2007, the rest of the country’s economic history is full of instability and low growth rates.

Over the past two years, the country has experienced economic growth rates of below zero (it means that the economy was not growing but it was getting smaller). Nobakht added that when the Rouhani administration took office, he faced serious problems such as budget deficit and broad trade limits.

 “One of the most important objectives of the government is to expand the economy according to mid and long-term economic development plans,” Nobakht concluded his speech.