Iran’s month-on-month inflation rate drops 2%: Official

The file photo shows a traditional bazaar in the western Iranian city of Kermanshah.

Iran’s month-on-month inflation rate has dropped by two percent in the previous Persian calendar month of Tir (ended July 22) compared to the month before, the Statistics Center of Iran says.

According to the new data, Iran’s inflation rate fell to 24.2 percent in the aforesaid month while the rate stood at 26.2 percent in the previous month (ended June 21).

On July 19, Iranian Minister of Economic Affairs and Finance Ali Tayyebnia pointed to Tehran’s new package for ending stagflation in the country and said that the government is determined to reduce the existing high inflation rate to a one-digit level.

The continued fall in the inflation rate started in November 2013, two months after President Hassan Rouhani warned that the Iranian economy was in a state of stagflation.

Stagflation is a situation where the inflation rate is high and the economic growth rate slows down.

Critics, however, claim that President Hassan Rouhani’s administration has failed to prevent the rising prices of commodities, particularly fuel, and encourage consumer spending.

Rouhani administration has envisaged a 25-percent inflation rate for the current Persian calendar year (ending March 2015).

Analysts believe that a rise in production of goods and services has reduced liquidity and led to the fall in the inflation rate.

By Press TV


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