Business News

 Iranian inflation climbs to 16 per cent 

TEHRAN: Prices in Iran rose 16.1 per cent in the year to June 21, with food and beverage costs jumping by a fifth, the central bank said yesterday in the first official price data published on its website in several months.

This shows prices rising more slowly than the 17.6pc for the year to February 19 in the bank's last inflation report, but still up by more than five percentage points since the same month last year.

Iranians often complain official figures do not correspond to price rises they see in shops, which economists say is partly because most people are concerned about a narrower range of goods and partly because the basket includes subsidised items.

Economists say profligate spending of Iran's oil revenue is helping to stoke inflation, but the government of President Mahmoud Ahmadinejad says the problem has been exaggerated and that price rises are under control.

He came to power in 2005 on a pledge to distribute Iran's oil wealth more fairly, but his economic policies face growing criticism from the public, the media and economists for failing to cut double-digit inflation and jobless rates.

An Iranian daily newspaper reported the inflation figure for May 22-June 21 last month, but this was the first time the bank had confirmed it.

The media had previously reported it was 16.6pc for the year to May 21.

Prices increased 11pc in the year to June 21, last year, based on a basket of 310 consumer items.

Figures since March have been based on 359 items, making accurate comparison difficult.

Last month, Ahmadinejad told state firms not to raise prices and threatened to punish violators, a move critics said would encourage corruption rather than tame inflation.

While food and beverage prices jumped by 20.2pc in the month to June 21, communication and transportation prices rose 0.3 and 10.4pc respectively, despite a 25pc hike in petrol prices in May.




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