Iran inflation surges 45pc in June
Dubai, July 25, 2013
Iran's inflation rate surged to 45 per cent in June, official data showed, adding pressure on squeezed Iranian households and an indication of the huge task President-elect Hassan Rouhani faces to repair the economy.
Spiralling prices and constricted spending power have left millions of Iranians struggling against a virulent combination of Western economic sanctions and poor fiscal management.
Rouhani, a former nuclear negotiator, was elected last month on a campaign that prioritised Iran's economic difficulties and vowed to create a government of "prudence and hope" to restore the country's financial health.
But while a majority of the country's political factions have hailed his victory, the inflation rate will be a big concern for the moderate cleric who takes office on August 4.
Prices rose 45 per cent in the month up to June 21 compared to the same month a year earlier. They accelerated from 41.7 per cent inflation in the month to May 21.
Prices rose 25 per cent in the corresponding calculation for last year, official figures showed.
"The Central Bank has announced the price index for goods and consumer services ... for the month of Khordad this year (ended June 21) ... the inflation rate reached 45.1 per cent," Mehr news agency said late on Wednesday.
Inflation averaged 35.9 per cent over the 12 months through June 21, the central bank said earlier this month.
Inflation has resulted in several-fold price increases of staple foods and fuel and the prospect of finding a job is increasingly difficult because of slumping investment and productivity.
Independent analysts say the official figures do not show the real picture and some estimate actual inflation is double the official figures or more.
With deep rooted problems in the economy, and what critics say has been eight years of fiscal mismanagement under President Mahmoud Ahmadinejad, and no for seeable end to sanctions imposed by the United States and its allies against Iran's disputed nuclear programme, Rouhani is unlikely to be able to turn the tide quickly.
Iran says its nuclear programme is for entirely peaceful purposes. - Reuters
More Government & Laws Stories
- Galfar ex-CEO gets 15 years' jail over bribes
- New law on family violence on the way in Bahrain
- Four blast suspects are remanded in Bahrain
- Bahrain to step up war on terror
- Norton Rose Fulbright moves London head to Dubai
- DSG ‘ready to implement Smart Dubai Strategy’
- Iraqi women protest new draft law
- Bahrain police 'face more danger in line of duty'
- Saudi names Brotherhood as terrorist group
- Qatar outraged over terror claims
- Bahrain PM condemns exploitation of children
- Qatar will not alter foreign policy: source
- Bahrain accuses Iran of fomenting trouble
- 'Put security before rights' in Bahrain: publisher
- 'Hizbollah trained Daih blast suspect'
- Key terror blast suspects named in Bahrain
- $2.6m Royal Fund for martyrs set up
- Bahrain to draw up new anti-terror laws
- GCC ROW: Qatar voices surprise over envoys pull out
- GCC tobacco tax rise ‘will fuel illicit trade’
- Saudi, UAE, Bahrain withdraw envoys from Qatar
- Bahrain explosion draws global condemnation
- GDN photographer hurt in blast is discharged
- Iran playing increasing role in Bahrain unrest
- Bahrain launches 6-point plan to fight terror
- Sisi gives sign he will run for president
- New Saudi clamp on energy drinks
- Health insurance must for Saudi visa
- Qatari doctor gets 7 years jail in UAE
- Family violence law articles approved in Bahrain