Iran inflation increases to 17.9pc

TEHERAN — Consumer prices in Iran rose 17.9 per cent in the year to September 22, the central bank said, releasing data showing inflation is continuing a steady rise in the country. The consumer price index climbed 17.3 per cent in the year to August 22.

By (Reuters)

Published: Sun 4 Nov 2007, 9:08 AM

Last updated: Sat 4 Apr 2015, 11:10 PM

Economists say profligate spending of Iran’s oil revenue is stoking inflation, but the government of President Mahmoud Ahmadinejad says the problem has been exaggerated and that the issue is under control.

Iran, the world’s fourth largest oil exporter, has made windfall gains from the high oil price in recent years. It expects to earn about $70 billion from oil exports in the year to March 2008.

The monthly inflation report issued on the central bank’s web site ( said food prices climbed by 20 per cent in the year to September 22. Inflation is one of the biggest gripes for many Iranians and Ahmadinejad’s government has faced mounting criticism from the public and the media since he took office in 2005 for failing to rein in price rises.

Iranians often complain official figures do not correspond to price rises they see in shops. Economists say this is partly because most people are concerned about a narrower range of goods and partly because the basket includes subsidised items.

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