Central Bank Report: Inflation Rate Reached 8.7% in October

The Central Bank's report on the consumer price index in urban areas of Iran for October this year indicates that the average inflation rate for this month reached 8.7%. According to this report, the inflation rate for the twelve months ending in October showed a decrease of 0.1 percentage points compared to the average inflation rate of September, remaining almost stable. Previously, the Statistical Center of Iran had announced the inflation rate for the twelve months ending in October this year as 7.9%, which showed a decrease of 0.4 percentage points compared to the previous report from the center regarding the average inflation rate of September. Thus, the average inflation rate in October this year has maintained its downward trend in both the Central Bank and the Statistical Center's narratives, although the decrease in the Central Bank's report is so small that the interpretation of stability for the average inflation rate is accurate. It should be noted that a decrease in the inflation rate does not mean that the prices of consumer goods and services are becoming cheaper, but rather that the pace of increase in the general price level is slowing down. In another part of the Central Bank's report on the inflation rate for October, the point-to-point inflation rate for this month was announced as 9.3%, indicating a decrease of 0.2 percentage points compared to the previous information from this bank. The point-to-point inflation rate in October this year, according to the Statistical Center of Iran's report on the price index of consumer goods and services for urban households, shows that this rate reached 6.6%, which is a decrease of 0.1 percentage points compared to the same information from the previous month. Additionally, the monthly inflation rate for October was reported by the Central Bank as 0.4%, which reflects a decrease of 0.3 percentage points compared to the monthly inflation rate of September. The monthly inflation rate for October in the Statistical Center's report was announced as 0.7%, while the monthly inflation rate for September, according to this center's report, was recorded at 0.2%. In the Central Bank of Iran's report on changes in the price index of consumer goods and services in urban areas, among the main groups, the highest price changes were related to the main group of 'health and medical care,' which experienced a 17.5% increase in its price index in October this year compared to October last year. The health and medical care group has consistently experienced the highest inflation rates in recent months. Following this group, the main groups of 'education' with a point-to-point inflation rate of 11.3%, 'entertainment and cultural affairs' with a price increase of 10.4%, and 'tobacco' with a point-to-point inflation rate of 10.2% ranked next. The communications group was the only group that had a negative point-to-point inflation rate, with a 0.3% decrease in its price index this month. After this group, the lowest price index growth was attributed to the main group of 'furniture, household items, and services used in the home,' which experienced a 4.9% price increase in October 95 compared to October 94. The continued decrease in the inflation rate in October this year comes amid warnings from several economic experts regarding the increase in the money supply in Iran's economy in recent months and the continued growth of this index by nearly 30%, which they believe will lead to inflationary effects in Iran's economy with a delay. On the other hand, government officials, including Hassan Rouhani, speak of the reduction in the inflation rate as the most significant economic achievement of the eleventh government, emphasizing in his latest remarks that the decrease in the inflation rate from above 40% when taking office in mid-92 to below 10% began before the signing and implementation of the JCPOA and attributes it to the planning and performance of his economic team. Some government critics believe that one of the factors contributing to the decrease in the inflation rate is the deepening recession and the decline in people's purchasing power.