Iranian Parliamentary Research Center: Internal mismanagement is main cause of price hikes

Iran Materials 16 July 2013 17:27 (UTC +04:00)

Azerbaijan, Baku, Jul 16/ Trend, F. Karimov/

The research center of the Iranian parliament has said in a report that internal mismanagement is the main cause of price hikes in the country, the Tehran-e Emrooz Persian language daily reported on Tuesday.

A poll on Iran's business environment answered by 285 private sector organizations showed that internal mismanagement was the main cause of price hikes in autumn 2012, the daily paper said.

Another newspaper, Qanoon, has rejected statistics from economic minister Shamseddin Hosseini and questioned him for his alleged planning of FOREX management and export development.

Sixty eight percent of economic organizations have said that internal mismanagement was the main cause of the price hikes, and 29 percent referred to international sanctions as the main cause.

Just three percent of these organizations placed blame on the subsidy reform plan.

In autumn 2012, the U.S. dollar exchange rate hit 30,000 rials. But, President Mahmoud Ahamdinejad said that the price hike was due to international sanctions and had nothing to do with internal management, according to the Tehran-e Emrooz newspaper.

The latest report of the Central Bank of Iran shows that inflation rate is near 40 percent. Meanwhile, president-elect Hassan Rohani said inflation is 42 percent.

Prices of 11 groups of foods, including dairies, rice, beans, fruits, meat, sugar, and edible oil rose in Iran in the week endeding on July 5 compared to the same period in the previous year, the Mehr News Agency reported.

According to a report released by the Central Bank of Iran, dairy products, eggs, rice, fruits, sugar, and edible oil rose by 40.7 percent, 59.7 percent, 64.2 percent, 18.3 percent, 41.2 percent, and 58.2 percent respectively, year on year.

Prices of staple foods in Iran will likely rise as the administration will no longer allocate the U.S. dollar at an exchange rate of 12,260 rials for rice, meat, milk, and edible oil imports, the Mehr News Agency reported.

The administration of President Mahmoud Ahmadinejad has officially announced that it will pay U.S. dollar at the Forex Center rate, which is currently about 24,000 rials.

First-Vice President Mohammad-Reza Rahimi has said that under the current severe economic sanctions against the country, the administration is committed to support the low-income strata of society.