Iran Central Bank predicts 32 percent annual inflation rate
Azerbaijan, Baku, Feb.8 / Trend F.Mehdi/
The Central Bank of Iran has predicted that the inflation rate in the end of the current Iranian calendar year (March 20) would hit 32 percent, the Mehr News Agency reported.
The inflation rate for the 12-month period ended the tenth Iranian calendar month of Day (January 19) rose by 1.3 percent compared to the 12-month period ended on December 20, 2012 and hit 28.7 percent.
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.
Since recent rises in prices of goods are in close relation with rises in foreign currency prices, so we should rein in foreign currency shocks, he added.
Seventeen million Iranians will receive staple food rationing cards, as the administration and the parliament have agreed to adopt policies to assist low-income families, the Mehr News Agency reported.
Earlier, the Majlis and the administration agreed to allocate $2 billion from the National Development Fund to support low-income families.
The money will be used to provide staple foods to poor families.
On October 22, 2012, Iranian First Vice-President Mohammad-Reza Rahimi rejected the idea of reinventing the coupon-based supply of staple foods.
The Donya-ye Eqtesad daily quoted Rahimi as saying that reserves staple foods, such as rice, meat, milk, and edible oil are sufficient and there is no need to re-launch the coupon-base system.
Meanwhile, member of the Iranian parliament's economic committee Arslanan Fathipour has said Iran might be implementing the electronic discount cards for strategic products.
Fathipour said that given the today's economic situation in the country, and the imposed international sanctions, the coupons must be brought back in the shape of electronic coupons.
This would be the second time Iran is using such strategy to support its economy. After the Islamic Revolution in 1981 the country was experiencing great deficit of some foods and services.
At that time it was ordered to implement the special discount coupons for 10 emergency first products and services, to reduce the overall prices. After the economy stabilized, Iran canceled the discount coupons.