Official inflation in Iran rises to 21.5%

By : mina sabry

On : 4:15:00 PM

In : business

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New data showed that the official inflation rate in Iran rose to almost lesbian over the past year, with the rise of prices due to reforms of the budget, twice the value of the currency and international sanctions, which could increase criticism of the policies of Iranian President Mahmoud Ahmadinejad.


He said Iran's central bank said in a statement Sunday, the inflation rate in urban areas reached 21.5% in the Persian year ended March 19, and increased the prices of goods and services 12.4% in the previous year, according to figures announced by the bank earlier.


Prices jumped 3.4% in the last month of the year compared to the previous month, when consumer demand associated with the celebration of the end of the year.


He attacked some MPs economic management of President Ahmadinejad, who was summoned to parliament last month, in an unprecedented questioning of his policies.


It is believed many of the Iranians, that the real inflation is much higher than the average official, accusing some of the clergy and members of parliament of government to provide numbers are incorrect.


Inflation relentlessly low rate of 8.8% in August 2010, due mainly to the government's decision to cut subsidies for food and fuel in December 2010 to reduce wasteful consumption and cut in government spending.


But prices are also affected indirectly by the tightening of international sanctions on Iran over its nuclear program.


And caused the sanctions led by Washington and Europe to isolate Iran significantly from the international trading system in recent months, forcing importers to use more expensive means to procure food and intermediate goods and consumer products.


The sanctions also led to the depreciation of Iranian currency rial, which in turn added to inflationary pressures due to the high cost of imports.


The government said in mid-March it would allow trading freely between the riyal currency traders, in retreat from the policy developed by the seven-week required rotation the real, in the scope of the official exchange rate 12 260 riyals to the dollar.


It is believed many of the businessmen that the central bank will prevent further decline in the value of the riyal, which amounted to 19,050 rials against the dollar on Sunday, according to the Union of Iranian currency exchange offices.