Statistical Center: Inflation Rate Above 40 Percent, but 'Decreasing'; Raisi's Deputy: Meaning of 'Decreasing Inflation' is Not Rising Prices

While the Statistical Center of Iran announced that the inflation rate for the year 1402 has been above 40 percent for the third consecutive year, state media emphasized a decrease in point-to-point inflation, and the head of the Planning and Budget Organization stated that the meaning of decreasing inflation is not the non-increase of prices. According to the new report from the Statistical Center, the annual inflation rate in Esfand 1402 was about 40.7 percent, meaning that the average prices of the consumption basket for Iranian households in 1402 were about 1.5 times the prices of Esfand 1401. In the same report, the annual inflation rate in Ordibehesht 1402 was about 49.1 percent, in Tir 47.5 percent, and in Mehr 45.5 percent. The Statistical Center also clarified that the inflation rate in 1402 was lower than in 1401 but higher than in 1400, and in all these years, it exceeded 40 percent. This government agency also described the point-to-point inflation trend throughout 1402 as 'decreasing' and stated that in Farvardin 1402, the point-to-point inflation was at 55.5 percent, but in Esfand, it recorded a rate of 32.3 percent. State media referred to this part of the reported inflation statistics as an achievement of the Raisi government. The Statistical Center of Iran further stated that the highest annual inflation in 1402 for the consumption basket was for 'fresh food' at 55.7 percent, and the cost of renting in the country also increased by an average of 39.6 percent, while 'fruits and nuts' increased by at least 4 percent during the New Year and clothing and shoes also became 3.3 percent more expensive. Simultaneously, Davood Manzoor, Deputy to Ebrahim Raisi and head of the Planning and Budget Organization, stated in a television interview: 'Decreasing inflation does not mean decreasing prices, but indicates that the rate of price growth is slowing down and increasing at a lower slope.' The Iranian economy has faced multiple challenges in recent years, including high inflation. The Raisi government and state media are trying to portray the 40.7 percent inflation rate as an 'achievement for themselves.' They point to the decrease in point-to-point inflation throughout 1402, claiming it reflects the effectiveness of government policies, but experts believe the annual inflation rate is a more accurate indicator of the inflation situation in the country, as it shows the average price increase over a year.