121% Inflation of Imported Goods to Iran

The Statistical Center of Iran reports that the price of imported goods (in rials) has increased by about 122% in the fall of this year compared to the fall of last year. According to the report published on the official website on Monday, March 20, the rial inflation of imported goods in the fall compared to the summer is also close to 29%. This fall, the price of the dollar was around 11,000 to 12,000 tomans, while this figure was 4,600 tomans in the same season last year, indicating that the dollar price has increased by 160% against the rial during this fall compared to last fall, meaning it has increased 2.6 times. However, the growth in the rial price of imported goods is less than the growth in the dollar price against the rial. The reason for this is the allocation of government currency for a significant portion of the country's essential goods imports. The Statistical Center's data also indicates that the inflation of imported products for essential goods is much lower than for other goods. Recently, the official customs website reported, quoting Mehdi Mirashrafi, the head of customs, that 11 billion dollars of essential goods were imported into the country in the first 11 months of this year. The total imports of Iran in the first 11 months of this year were 38.5 billion dollars, indicating that essential goods constitute more than a quarter of the country's total imports. The dollar price of imported goods has also increased by nearly 19% in the fall of this year compared to the fall of last year. A significant portion of Iran's imports comes from China, the UAE, and Europe. According to the International Monetary Fund, the inflation rate in China and Europe in 2018 was only 2.2%, and the inflation rate in the UAE was also 3.5%. The Statistical Center did not clarify why, while the inflation rates of major exporting countries to Iran are very low, the prices of goods purchased from these countries have increased by 19% based on the dollar and their transfer to Iran. This issue apparently relates to the increased costs of importing goods, including financial transfers, insurance, and transit of goods under sanctions. Iranian officials, including President Hassan Rouhani, have previously mentioned a 20% increase in the cost of importing goods during the sanctions of Mahmoud Ahmadinejad's government. The dollar price increase for imported goods for industrial products, from bags and leather products to electrical, medical, and mechanical products, has been between 26% and 32%. The rial price increase for these products has been between 150% and 234%. However, the allocation of government currency for the import of essential goods has not been able to prevent the rampant price growth of these goods inside the country. For example, the details of the Statistical Center's report show that the rial price of imported meat has only increased by 12.3% this fall compared to last fall. Meanwhile, the rial price of meat has nearly doubled during this same period. The reason for the increase in meat prices is attributed to the rise in domestic meat production costs, which, according to the Statistical Center's reports, has increased by 58% in traditional farms and 68% in industrial farms this fall compared to last fall.