Iran's annualised inflation hits 44.9%: statistical centre

Iran's annualised inflation hits 44.9%: statistical centre
/ bne IntelliNews
By bne IntelliNews November 26, 2023

Iran’s average annualised inflation amounted to 44.9% during the eighth month of the current Persian calendar year (October 23-November 21), indicating a 0.6 percentage points or 1.31% decrease compared with 45.5% in the previous month, the Statistical Centre of Iran (SCI) reported on November 26.

The Consumer Price Index (CPI) for general goods and services, with the Iranian year to March 2022 as the base year, stood at 210.9 for the month, representing a 2.2% month-on-month (m/m) increase and a 39.2% year-on-year (y/y) rise.

The CPI for the "foods and beverages" group, which has a major coefficient of 28.82%, was registered at 243.8, indicating a 1% m/m rise and a 36.3% y/y increase. The annualised inflation for the group stood at 52.4%.

The CPI stood at 209.9 for urban households, while it amounted to 216.8 for rural households, reflecting a 2.2% and 1.9% m/m increase, respectively.

The annualised inflation rates for urban and rural areas were 44.6% and 46.8%, respectively, with year-on-year inflation reaching 39.3% for urban areas and 38.5% for rural areas.

The Iranian government scrapped the long-standing practice of subsiding imports last year, which caused the prices of goods and services to rise rapidly. With the overhaul of the subsidy system, the government stopped providing cheap foreign currency allocation for the imports of basic goods, leading to a spike in inflation. The effects of this measure are still present today.