Thursday, June 2, 2011

Inflation Rising

The Central Bank of Iran (CBI) today reported that the country's annual inflation rate for the period ending 22 May (30 Ordibehesht) rose to 14.2%. The prices in the month of Ordibeheshet alone rose by 1.7%, corresponding to an annual rate of inflation of over 20% [IRIB, 2 June].

Economists attribute the rise in prices to the removal of government subsidies on energy and food products and monthly cash payments of some $2.4 billion to households to cope with higher prices. The subsidy reforms began last December.

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