Sunday, October 9, 2011

Rising Inflation in Iran

Ahmad Tavakoli, the influential member of Majlis and the chairman of the Iranian parliament’s research center, said in Tehran that the country’s rate of inflation has reached 27 percent.

“According to Statistics Center of Iran (SCI)’s Price Index, the annual rate of inflation for the period ending in Iranian calendar month of Mordad (21 August) reached 27 percent,” Tavakoli said [Alef, 9 October].

The SCI, the government’s statistics and census organization, had announced last month that the annual rate of inflation for the period ending 21 July was at 19.6 percent. The jump of more than seven percent in annual rate of inflation in just one month is very significant and explains the anecdotal evidence of rapidly rising prices, such as the sharp rise in the price of eggs in the recent days.

The SCI’s new inflation rate, as announced by Tavakoli, contradicts an announcement made yesterday by the minister of finance and economy, Shamsodin Hosseini, who serves as the government’s economic spokesman, that the annual inflation rate stood at “around 17 percent.”

“According to the latest statistics, the inflation rate is around 17 percent… which is normal considering the rise in energy and food prices and the global rate of inflation,” Hosseini said [Fras News Agency, 9 October].

The SCI, however, is theoritically the country’s sole authority to calculate and publish the official rates of inflation and economic growth.

The latest announcements on inflation also refute an IMF prediction last August that Iran’s annual rate of inflation would be at 12.4 percent.


Anonymous said...

The IMF was sniffing coke when they made that forecast.

Anonymous said...

This is no surprise what do you expect when you have a system that imports junk from China and Turkey lays off it's workforce and pays Billions of Dollars out to idle population that is struggling to survive on a daily bases.
No major company is dumb enough to invest its money in Iran as long as the situation remains as it is because the companies will be black listed.
But it's OK because Iran is giving away $400 Million to poor countries such as Belarus.

Anonymous said...

its actually sinking . !