New car prices may be announced by mid-May, said a member of the Competition Council, as reported by Tasnim news agency. "Auto prices will be set using a formula devised by the council during the last Iranian year (which ended March 20)," the agency quoted Isa Emami as saying. "The defining criteria include car price inflation, quality, and productivity." He added that quality is the most important of the factors. If auto manufacturers improve car quality in general they will be rewarded by the council. The Central Bank of Iran, however, has not yet reported the car price inflation rate; the figures are expected to be announced in early May. If all goes according to plan, the council will be able to release its new prices by the end of May. Production costs have increased compared to previous years, the official noted. As inflation has now decreased to about less than 20 percent, the banking system needs to take the necessary measures to reduce the interest rate, he said. "If such measures are taken, the production costs will also reduce."
