Inflation Increased to Eight Percent in Azar

The Statistical Center of Iran has announced that the 12-month inflation rate ending in Azar of the current year is 8 percent, stating that point-to-point inflation has also reached 8.9 percent. Point-to-point inflation refers to the price differences over the past month compared to Azar of the previous year. According to a report published on the official website of the Statistical Center of Iran, inflation in food, beverage, and tobacco products has been significantly higher than in other goods. The report adds that inflation in the major group of food, beverage, and tobacco products in the 12 months ending in Azar has increased by about 12.4 percent compared to the same period last year, while this figure for non-food goods and services was only 6.4 percent. Detailed statistics show that prices of items such as red meat, groceries, fruits, and especially vegetables have seen a significant increase during this period. Among non-food goods and services, the highest price increases were seen in items such as water, electricity, and fuel, which rose by over 13 percent. Education costs also increased by nearly 11 percent. Housing prices and rents grew by 5.3 percent during this period. Notably, inflation in rural areas has been higher than in urban areas during this time. Although the 12-month inflation ending in Azar shows an increase, the rate of inflation growth has slowed compared to the statistics from the previous two months. The inflation growth rate in Aban and Mehr was 1 percent and 1.3 percent, respectively, while this figure was 0.7 percent last month. The government of Hassan Rouhani managed to reduce the approximately 40 percent inflation at the end of Mahmoud Ahmadinejad's presidency to single digits in Khordad of last year, even bringing it below 7 percent by the end of last year. However, inflation has risen again, and it is expected to return to double digits in the coming year. According to assessments by the United Nations, the International Monetary Fund, and other international organizations, Iran's inflation is expected to peak near 11 percent next year, but in 2019, the inflation growth rate is expected to decrease slightly to 10.2 percent. A decrease in inflation does not mean a decrease in prices but indicates a slowdown in the rate of price growth.