Iran inflation slows, first decline reported after 16 months

Press TV – The Statistical Centre of Iran (SCI), the body responsible for issuing reports on major economic indicators, says inflation is slowing for a first time since a political dispute with the United States erupted over a year ago and caused a major surge in prices.

SCI chief Javad Hosseinzadeh said on Saturday that point-to-point inflation for the Persian calendar month ending August 22 had declined to 41.6 percent, down from 48 percent in the previous month.

Hosseinzadeh told Iran’s state TV that for a first time in 16 months, the monthly rate was lower than the official inflation rate of 42.2 percent, which covers the entire year ending in late August.

“Point-to-point inflation has been on a declining mode” he said of the figures recorded for the past three months, adding that the trend means that Iran could further decrease its inflation rate by the end of the current Iranian calendar year in March when major indicators are evaluated.

The announcement comes amid reports suggesting that Iran is emerging from economic losses suffered as a result of US sanctions.
PressTV-‘US sanctions failed to force Iran to buckle’
PressTV-‘US sanctions failed to force Iran to buckle’
A Bloomberg report says Iranians are emerging from the impacts of US sanctions.

The sanctions began in November, five months after US President Donald Trump withdrew from an international deal on Iran’s nuclear program.

Claiming that the bans were working properly, Trump tightened them in May, only to see that Iran was finding new solutions to recoup the losses.

Since earlier last month, Iran’s national currency rial has regained some of its lost value, currently trading at 116,000 against the US dollar, and significantly up from historic lows of 190,000 in September 2018.

Inflation for staples, medicine and basic goods declined in August, according to the SCI’s Saturday statement, with 56.6 and 35.2 percent for food and non-food items, respectively.