The average annualized inflation in the ninth month of the current Iranian year (Nov. 22-Dec. 21) stood at 45%, the Statistical Center of Iran announced in a new report released on Thursday.
This is the seventh consecutive month the annualized inflation is rising after the government put into effect what it touted as “economic surgery” by abolishing the heavily subsidized import of essential goods.
The general goods and services Consumer Price Index (using the Iranian year to March 2017 as the base year) stood at 563 in the month under review, indicating a month-on-month rise of 1.9% and a year-on-year rise of 48.5%.
Among 12 groups of goods and services reviewed by SCI, the highest and lowest annualized inflation rates were respectively registered for “hotels and restaurants” with 73.9% and “communications” with 7.9%.
The highest and lowest MOM inflation rates were respectively registered for “health and medical treatment” with 8.8% and “food and beverages” with -0.1% month-on-month, respectively.
“Hotels and restaurants” with 78.5% and “communications” with 10.1% saw the highest and lowest YOY inflation respectively.
CPI hit 554.4 for urban households and 611 for rural households, indicating a month-on-month increase of 2.1 and 1.2%, respectively.
SCI put the annualized inflation for urban and rural areas at 44.3% and 48.6%, respectively.
The year-on-year inflation stood at 47.9% for urban areas and 51.4% for rural areas in the month.
The rise in prices of goods and services accelerated at an unprecedented pace after the government decided to overhaul the import subsidy system.
The government move saw the abolition of the controversial practice of allocating cheap dollars at the rate of 42,000 rials per dollar, locally known as the Preferential Foreign Currency, to import essential goods, including corn, soymeal, unprocessed oil, oilseeds and barley, in addition to wheat, flour and medicine.
The market value of the dollar is currently above 380,000 rials.