Iran Economy NewsIran Inflation Rate at 15.9%

Iran Inflation Rate at 15.9%

-

Iran Inflation rate

Iran Focus

London, 30 Oct – The Iranian inflation rate has risen to 15.9% in October, the Central Bank of Iran reported. They also noted that the inflation rate has soared by 36.9% compared with the same month from 2017.

This announcement came just one week before US sanctions targeting Iran’s international banking and oil export sectors come into force.

Hyperinflation

Some economists are even warning about a hyperinflation that would rise up to 65%, something that economy minister Farhad Dejpasand also spoke of on Saturday.

President Hassan Rouhani dismissed this, branding the economists “liars”, during the same session that Dejpasand attended, forcing the economy minister to try to “correct” himself.

The term “hyperinflation” was widely used by the Iranian press after Professor Steve Hanke of Johns Hopkins University used the word earlier this year, when he advised that the annual inflation rate in Iran was then at 151%; a figure that he says has grown to 250% today.

Inflation is dangerous as the economic uncertainty can easily spark mass protests, as we’ve seen earlier this year in Iran, especially considering the still-volatile feeling in Iran.

Statistical differences

However, let look again at the official stats. The rate of inflation in Iran grew from 11.5% in August to 13.5% in September, to 15.9% in October, while the point to point inflation rate rose from 31.4% in September to 36.9% in October.

Hanke has stated that Iran’s actual inflation rate is 10 to 12 times higher than the official rates announced by Iranian government institutions. Why is there this difference?

Well the main reason is that Hanke is using the official global exchange rate of 200,000 rials to the US dollar to make his comparisons, whereas Iran is using their artificially set exchange rate of 42,000 rials to the dollar. Even according to the Iranian Parliament’s research centre, a 10% rise in the rial-dollar exchange rate will add 2% to the inflation rate, which means that if they are working from different exchange rates, they will get different levels of inflation.

Iran is also only comparing a select group of goods, rather than the whole economy.

Mohammad Gholi Yousefi, professor of economics at Allameh Tabataba’i University, said: “Hanke’s statistics are more accurate, because most of the goods in Iran are imported from abroad and are therefore influenced by the exchange rate.

Exchange rates even affect non-commercial goods such as taxi fares. Therefore, the exchange rate index is more accurate to assess the inflation rate.”

Latest news

 Statistics show that New Year accidents’ deaths in Iran reached 585

Ahmad Shirani, the head of the Information and Traffic Control Center of the Iranian regime’s police, announced that the...

Land Subsidence in Critical Conditions in Isfahan

Mehdi Toghyani, a member of the Iranian regime’s Majlis (parliament), pointed to the occurrence of land subsidence in various...

Iran’s Actual Inflation Rate Higher Than Official Stats

The state-run Donya-e-eqtesad newspaper, in a report analyzing the "general sentiment" regarding inflation in 2023, has stated that households...

Iranian Workers’ Monthly $136 Wages Can’t Cover $500 Expenses

The lives of a significant portion of the Iranian population are marked by uncertainty, largely because the Iranian economy...

Iranian Nurses Earn Twice Their Wages in Ride-Hailing Services

Reza Aryanpour, a member of the regime’s Majlis (parliament) Health and Treatment Commission, highlighted the growing trend of nurses...

Iran: Unprecedented Record of 152 Million Liters of Gasoline Consumption Per Day

On March 19, Iran set a new historical record in gasoline consumption with 152 million liters consumed in one...

Must read

Iranian aid ships head for Gaza

Reuters: Iran is sending aid ships to blockaded Gaza,...

Europe on alert over Iran nuclear ambitions

The Guardian: European powers are poised to call an...

You might also likeRELATED
Recommended to you