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2/9/04

Iran: Inflation rises further to 10.6 percent

Inflation in Iran continued its upward trend for the second consecutive year, going up to 10.6 percent in a year to Azar, the ninth month of the Iranian year, with fish, vegetables, fresh fruits, cotton, aluminum and imported medicine becoming costlier, IRNA reported from Tehran.

Reflecting the increased cost of living, the general price line, measured by the wholesale price index (WPI), rose by 10.1 percent in Azar compared to the figure for the corresponding month last year and rose by 2.1 percent in the month to 214.2 points compared to the previous month of Aban as prices of certain 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 the state organizations, government's domination of key economic sectors, indiscriminate 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 - 2/9/04 ... --



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