Parliament says Iran’s inflation to reach 32 percent

Business Materials 10 May 2013 16:43 (UTC +04:00)

Azerbaijan, Baku, May.10/ Trend R.Zamanov

Iran's inflation is predicted to reach 32 percent in the current Iranian calendar year (which ends March 20, 2014), the Majlis (Parliament) Research Center announced.

Iran's economic growth will also stand between 0.7 and minus 4 percent, Mehr News Agency reported.

According to the Majlis Research Center, Iran's money supply will also face 30 percent increase.

Iran's inflation rate reached 29.8 percent in the first month of the current Iranian calendar year (March 21-April 20), the Mehr News Agency reported, citing the Statistics Center of Iran.

The figure decreased by 1.5 percent compared to the last month of the past year.

Inflation in Iran amounted to 25.4 percent on the average during the past [Iranian calendar] year.

The inflation rate increased from 21.8 percent in the first calendar month of Farvardin to 31.3 percent in the final month of Esfand, according to the report.

Growth in liquidity and foreign currency exchange rates were probably the main causes of inflation rise.

In December 2012, IRNA quoted Finance and Economic Affairs Minister Shamseddin Hosseini as saying that the Iranian administration has special plans to curb a probable surge in inflation during the final months of the current Iranian calendar year, ending on March 20, 2013.

The International Monetary Fund said on April 16 that the economy of the Islamic republic is forecast to grow next year by 1.1 percent.

The IMF said the "macroeconomic environment is likely to remain difficult, given the sharp depreciation of the currency and adverse external conditions, which would sustain inflation at relatively high levels."