Inflation rate in Iran decreasing

Business Materials 14 February 2012 17:29 (UTC +04:00)

Azerbaijan, Baku, Feb. 14/ Trend M. Moezzi

The head of Iran's central bank said the inflation rate in late January was 21 percent and low interest rates for short-term deposits were useless in stabilizing the market, Mehr news agency reports.

Mahmoud Bahmani the Central Bank of Iran's (CBI) chief said if reasonable interest rates are offered for saving accounts, then people who are averse to risk would be willing to leave their money with banks instead of investing it in gold and foreign currency.

With the inflation rate at 21 percent, the 12.5 percent rate currently offered for six month and one year deposits is meaningless according to he CBI chief.

The country's inflation rate is decreasing said Mr. Bahmani. Iran's targeted subsidies program caused a six percent increase in the inflation rate. Now that the program has been implemented the that six percent won't be a factor anymore.