Inflation Index Increased by 20 Percent in the First Seven Months of This Year Compared to Last Year

The Central Bank of Iran announced that the inflation index in October of this year increased by about 37 percent compared to the same month last year, and the seven-month index of this year rose by 20.3 percent compared to the same period last year. According to the latest monthly report from the Central Bank of Iran, the prices of food and beverages in October of this year increased by nearly 56 percent compared to October last year, household goods by 72 percent, clothing and footwear by 39 percent, and recreation and cultural affairs by 80 percent. All US sanctions against Iran were re-implemented from November 14, and the Central Bank's monthly report covered the prices of goods and services until last month. Based on the report from the Central Bank of Iran titled 'Consumer Price Index in Urban Areas of Iran,' the inflation index in October of this year reached about 148, which is a 37 percent increase compared to October last year. According to the same report, the overall price index of goods and services in October of this year increased in all provinces of Iran compared to the previous year, with the highest increase in Sistan and Baluchestan province at eight percent and the lowest in Tehran province at 3.3 percent. Various institutions report the inflation rate in Iran with different statistics. Additionally, the Central Bank of Iran announces the inflation rate in three ways: '12-month average inflation,' 'point-to-point inflation,' and 'month-to-month inflation.' According to Fereydoun Khavand, an economist and economic analyst, the inflation rate announced by the Central Bank does not reflect the severe fluctuations that people feel in the prices of goods and services necessary for their daily lives, and the Iranian economy is grappling with severe inflationary tensions. Fereydoun Khavand and some other economists have spoken about the specter of 'hyperinflation' looming over the Iranian economy, and some media outlets have warned of inflation exceeding 50 percent and the 'Venezuelanization of Iran.' However, Hassan Rouhani, the President of Iran, three weeks ago called the occurrence of 'hyperinflation' a 'lie' and stated, 'Although we have passed the single-digit inflation, we can definitely control inflation.' Officials of the Islamic Republic have shown contradictory reactions regarding US sanctions; some have said that the sanctions 'have no effect on the country's economic trend,' while others have confirmed the severe impact of sanctions on the country's economy and announced the preparation of a plan called 'commodity card' or 'electronic coupon' for the needy. Donald Trump, the President of the United States, and some of his administration officials have stated that the goal of the sanctions is to 'change the behavior of the Islamic Republic' regarding its nuclear program, missile program, and 'Tehran's negative role' in the region.