December Inflation Exceeded 46 Percent

Iran’s Statistical Center said the point inflation rate in December 1399 reached 46.2 percent.

Point inflation refers to the price growth of a set of goods and services in a specific month compared to the same month in the previous year.

Details of the Statistical Center’s report published on its website show that the point inflation rate for the major group of “food, beverages and tobacco” reached close to 60 percent, and the inflation rate for the group of “non-food goods and services” reached around 40 percent.

Accordingly, the rate of price growth for food items was higher than non-food goods and services.

Inflation rates in Iran were single-digit until Ordibehesht 97, but from that time both the exchange rate increased and inflation rose sharply.

Over the past four months, the point inflation rate has consistently been above 40 percent.

The dollar exchange rate, which was 16,000 tomans at the beginning of the current solar year, reached 32,000 tomans in mid-autumn, but then showed a declining trend and fell to around 21,000 tomans by Monday of this week. After that, it resumed an upward trend and reached around 23,000 tomans on Wednesday, the first of Bahman.

Increasing exchange rates along with liquidity are among the most important factors in price growth of goods and services.

Among food items, the highest price increases were related to bread and grains (62.2 percent) and dairy products (73.4 percent), as well as fruits and dried fruits (78.8 percent). In the services sector, the highest price increase was related to transportation, which increased by 62.5 percent.

The statistical details also show that inflation in rural areas was higher than in cities.

Price growth of goods and services in rural areas during December of the current year compared to the same month last year was 49.8 percent, while this figure for urban residents was 45.5 percent.

Annual Inflation

The Statistical Center’s report also states that the annual inflation rate (12 months ending in December compared to the same period last year) reached 32.2 percent.

Iran has one of the highest annual inflation rates in the world.

International Monetary Fund statistics show that in the current calendar year, Iran has the highest inflation rate in the world after Sudan, Zimbabwe, Venezuela and Suriname, and in the next solar year will also have the highest inflation after Sudan and South Sudan, Venezuela and Suriname.

In year 98, Iran also had the highest inflation rate in the world after Argentina, Venezuela, Sudan, South Sudan and Suriname.

Source: Radio Farda