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Inflation in Iran rises further to 12.9 percent

Tehran, Dec 6, IRNA -- Inflation in Iran continued its upward trend year-on-year, going up to 12.9 percent in a year to Mehr, the seventh month on the Iranian year (started March) with certain goods becoming costlier.

The Central Bank of Iran's (CBI) monthly report listed eggs, chicken, flour, wheat, corn, rooted and leaved vegetables, tomato paste, sugar, sugar beets, cooking oil, benzene, propane, butane, soaps, iron, steel, copper, shoes, rubber and machine-made carpets as the items which cost more.

Reflecting the increased cost of living, the general price line, measured by the wholesale price index (WPI), rose by 12.9 percent in Mehr compared to the figure for the corresponding month last year and increased by 15.8 percent in the month to 241.8 points compared to the earlier month of Shahrivar as prices of the above-mentioned goods continued upward compared to those in the previous year's level.

In Iran, inflation is mainly caused by banking mismanagement, staggering loan and borrowing, mostly by state organizations, government's domination of key economic sectors, allocation of subsidy both to the poor and the rich, and government's expansionary policies.

The fixed income group, which includes employees and workers, suffer the most from inflation.

Government has been trying to follow deflationary policies, including raising taxes, issuing participation bonds, and revising banking policies.

... Payvand News - 12/7/04 ... --

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