Iran getting out of stagflation

TEHRAN August 5 (Shana)–Minister of Economy Ali Tayyebnia said there are signs of government getting out of stagflation.

 The minister said on state television that the policies implemented by the administration of President Hassan Rouhani are bringing about positive economic growth.

He said the government has slashed the inflation rate from 45 to 15 percent since it took office last August.

Tayyebnia said foreign investment is likely to be made in the country due to foreign exchange rate fluctuations and high banking interest rates.

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 said.

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).

Critics, however, claim that President 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 SHANA

 

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