Nuclear deal not to have great impact on inflation in Iran

Nuclear Program Materials 27 May 2015 17:55 (UTC +04:00)

Tehran, Iran, May 27

By Mehdi Sepahvand - Trend:

While Iranian diplomats are negotiating a deal with the group P5+1 (the US, UK, France, Russia, China, and Germany) on the country's nuclear program, the people of the country are expecting a relief from inflation and high living costs after the prospective deal.

To be reached by the end of June, the deal is expected to remove economic sanctions on Iran that have greatly increased end user prices in the Iranian market.

However, there are some who believe that relegating too much to the nuclear agreement is not realistic.

"I do not believe that great changes will occur when a nuclear deal is struck. It is a wrong impression that prices will fall noticeably; that is an impossibility," Seyyed Nasser Mousavi Largani, deputy chairman of the Economic Committee of Iran's Parliament told trend May 27.

The Iranian MP dismissed relations between the sanctions and inflation, noting that countries that are not exposed to sanctions also have similar inflation rates.

According to Largani, the production section was one of the parts hit worse by sanctions.

Production companies in neighbor countries have markets in different places where they can sell their products, but Iranian producers cannot sell theirs because of the sanctions, the MP said.

He concluded that the removal of the sanctions will improve production and labor status in Iran.

The Central Bank of Iran (CBI) announced that the inflation rate for the 12-month period to the second Iranian calendar month of Ordibehesht (ended on May 21) hit 15.5 percent.

The Central Bank also said that the consumer price index (CPI) in Iran's urban areas stood at 221.8 units in the second month of the current fiscal year, which is one percent more than its preceding month.

The figure also indicates an increase by 16.2 percent compared to the same month of last year.

Edited by CN

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