Iran hopes to reduce inflation rate 7 per cent by mid-March

Business Materials 27 October 2013 16:26 (UTC +04:00)

Azerbaijan, Baku, Oct.27/ Trend F.Karimov/

Iran's inflation rate is hoped to be reduced by 6-7 percent by the end of the current Iranian calendar year (March 20, 2014), ISNA quoted Iranian economy minister Ali Tayyebnia as saying.

Through curbing the runaway liquidity growth in the country, the inflation rate is hoped to be de decreased, he added.

Adopting proper and efficient monetary and fiscal policies will help curb the inflation rate, he said.

On October 9, the Mehr News Agency quoted a report by the Statistical Center of Iran as saying that inflation rate in Iran's rural areas amounted to 42.3 percent in the past Iranian calendar month of Shahrivar (ended on September 22).

The figure rose 0.9 percent compared to its preceding month of Mordad (ended on August 22).

Meanwhile, the point-to-point inflation rate hit 42.7 percent.

On October 1, IRNA quoted Masoud Nili, the advisor to the Iranian president, as saying that Iran's economy needs major reforms.

The national economy needs to be reformed in the foreign currency, cash subsidies, privatization, and the banking sectors, he said.

Once the four sectors of the economy are reformed, economic activities will go on normally, and then economic improvement will be realized, he explained.

Either economic reforms have not been carried out at all in recent years, or have not been carried out correctly, he noted.

Iranian Parliament Research Center released a report, which says Iran's economy contracted 3 percent during the last Iranian year which ended on March 2013, and it is estimated to contract 1.3 percent more during the current Iranian solar year.

According to the report, an average economic growth during last 8 years is 3.52 percent, while Statistical Centre of Iran said earlier that Iran's economy contracted by 5.4 percent during last solar year.

The Parliament Research Center said that during 2006-2011, about 300,000 job opportunities have been lost, namely, number of the demands for labor force decreased from 20.84 million to 20.51 million.

According to Central Bank of Iran's statistics, inflation rate in last month reached 39 percent. On the other hand liquidity increased from about 700 trillion rials to above 4,790 trillion rials during last eight years.