Iran’s inflation rate increases 1.2 per cent to reach 31 per cent
Azerbaijan, Baku, Jun.4/ Trend F.Karimov/
Iran's inflation rate increased by 1.2 per cent in the second Iranian calendar month of Ordibehesht (April21-May 21) to reach 31 per cent, ISNA reported.
This is while the inflation rate had decreased 1.7 per cent in the first month compared to the last month of the previous year.
The governor of the Central Bank of Iran Mahmoud Bahmani said nothing more can be done to curb inflation, the Tasnim News Agency reported.
Last year, the Central Bank paid 1,956 billion rials in financial facilities, 31.7 per cent of which was paid to the production and industry sector, he noted.
Previously, Bahmani said the country hopes to curb inflation through three financial policies.
By selling bonds and gold coins as well as through reducing liquidity, we are hope to curb inflation, Mehr quoted Bahmani as saying.
Bahmani also said that gold has been purchased and reserved sufficiently for 15 years and that there is no problem in this regard.
Inflation in Iran amounted to 25.4 per cent on the average during the past Iranian calendar year.
The inflation rate increased from 21.8 per cent in the first calendar month of Farvardin to 31.5 per cent in the final month of Esfand, according to the report. Growth in liquidity and foreign currency exchange rates were probably the main causes of the 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 ended March 20, 2013.
The International Monetary Fund said on April 16 that Iran's economy contracted by 1.9 per cent in 2012 and is expected to shrink by 1.3 per cent this year as it reels from the impact of Western sanctions.
The economy of the Islamic republic is however, forecast to grow next year by 1.1 per cent the IMF said in its annual World Economic Outlook.