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Iran: Inflation rises further to 13.9 percent

Tehran, Oct 31, IRNA -- Inflation in Iran continued its upward trend year on year, going up to 13.9 percent in a year to Shahrivar, the sixth month on the Iranian year (started March) with foodstuff, wheat, fresh fruits, hand-woven carpets, soft drinks, auto engines, spare parts and stationaries becoming costlier.

Reflecting the increased cost of living, the general price line, measured by the wholesale price index (WPI), rose by 13.9 percent in Shahrivar compared to the figure for the corresponding month last year and increased by 0.7 percent in the month to 237.6 points compared to the earlier month of Mordad 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, 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 - 11/1/04 ... --

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