Inflation to reach 7% with subsidies
The governor of Central Bank of Iran stated that inflation will definitely continue to decrease and reach 7 percent by September 23.
Mahmoud Bahmani added that the inflation resulting from the removal of subsidy is out of the control of the CBI.
Bahmani highlighted the CBI's measures to curb inflation and said, "In order to control the inflation rate, monetary and financial policies must be managed collectively, and all issues related to controlling inflation are not in the hands of the central bank."
He went on to say that the present trend in the inflation rate will lead to a definite decline in the rate if the economic reform plan is not implemented and subsidies on various products are not removed.
Inflation rate at the end of the Iranian calendar month of Farvardin (April 20, 2010) reached 10.4 percent. For Ordibehesht, Khordad and Tir (April 21 - July 20) the inflation rate was quoted at 9.9, 9.4 and 9.1 percent respectively. Finally in the month ending August 22 (Mordad) the figure reached 8.8 percent.