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Official Inflation Rate In Iran At 42 Percent In Past 12 Months

FILE PHOTO: People buy fruits and vegetables from Tajrish Bazaar in Tehran, Iran.

Iran’s Statistical Center says the inflation rate in the 12-month period ending on October 22 was 42 percent compared to the previous 12 months, with inflation higher in rural areas.

However, price increases differ substantially among various goods and services. While food prices have risen by 61 percent and tobacco by 80 percent, non-food items and services have gone up by 34 percent. But there are some exceptions. Prices for cloths and shoes have risen by 51 percent.

Iran’s Statistical Center (ISC) is the only official institution issuing inflation reports. The government and the Central bank have not issued any figures this year. There are no other independent sources of information to compare with ISC figures.

Tough sanctions crippling Iran’s trade are the main reason for the country’s inflation. The currency rial lost most of its value against other currencies in the past 18 months, which fueled a rise in prices.

According to ISC figures the pace of inflation has slowed down in recent months as the rial has somewhat strengthened and stable, although it is still down fourfold compared with two years ago.

Both the International Monetary Fund and the World bank have predicted Iran’s inflation to hover just under 40 percent in 2019. It is not clear how much they rely on official Iranian figures, since they have no presence on the ground.