Iran's inflation rate hits 17.2 percent

Business Materials 30 August 2011 10:34 (UTC +04:00)

The Central Bank of Iran (CBI) governor said the country's twelve-month inflation rate ended to the calendar month of Mordad (July 23-August 22) reached 17.2 percent, showing a modest growth despite implementing the subsidy reform plan, reported Daily Tehran Times with reference to Mehr news agency.

Governor of the Central Bank of Iran (CBI) Mahmoud Bahmani said that the direct share of the subsidy reform plan in the 16.3 percent inflation of the last month was only 4.5 percent and the indirect share was 1.9 percent.

Earlier this month, the CBI chief predicted that inflation will reduce in the coming months and the country will achieve its goal of single digit inflation in the next Iranian calendar year.

The subsidy reform plan, which was implemented in October 2010, charts out how the Iranian government will gradually slash national energy subsidies over the course of five years, with low-income families being compensated directly with cash subsidies.