Inflation in Iran Increases by One Percent in August; Point-to-Point Inflation Approaches 20 Percent

The Statistical Center of Iran announced on Friday that the inflation rate in August has reached 9.7 percent, reflecting a one percent increase compared to the previous month. According to the statistics published on Friday, September 2, in Iranian media including the IRNA news agency, the point-to-point inflation rate has also risen by 5.5 percent to 19.3 percent. In this month, the prices of all goods and services, including food items, have increased in the country. According to this center, the inflation rate for 'food, beverages, and tobacco' this month was 12.1 percent, while the inflation for 'non-food goods and services' was 8.8 percent. The Central Bank has not yet announced the inflation rate for August, but the inflation rate for July had reached double digits at 10.2 percent. Meanwhile, economist Fereydoun Khavand noted in a commentary on Radio Farda on August 6 that with an 18 percent point-to-point inflation rate this month, the Iranian economy is 'grappling with severe inflationary tensions, and if the current situation continues, a real storm in prices is on the horizon.' Now, Hamid Zamanzadeh, deputy of the Central Bank's research institute, has predicted that due to the increase in currency prices, inflation will reach 25 percent this year and 20 percent next year. Additionally, according to a recent report from the Research Center of the Parliament, for every 10 percent increase in currency prices, inflation will rise by 2 percent. American economist Steve Hanke from Johns Hopkins University estimated the current inflation rate in Iran's economy to be as high as 117 percent, which is 10 to 12 times higher than the officially announced rate. The significant discrepancy in the assessment of Iran's inflation rate by this economist is due to his use of the exchange rate (dollar) in the free and unofficial market in his calculations.