Page 20 - IRANRptNov21

4.2 Inflation
4.2.1 CPI dynamics
Latest Iranian annual inflation of 45.2% highest in 27 years
PAST TRENDS: Iran’s economy has been devastated—but not defeated—by the swingeing Donald Trump sanctions brought in from mid-2018, plunging the country into three years of bitter recession. What happens next with just about all economic indicators, including inflation, will depend on whether Tehran can reach an accommodation, via a revival of the 2015 nuclear deal, with the Joe Biden administration. Inflation has raged in Iran since Trump launched his “maximum pressure” campaign—consumer prices in 2019 rose 41% and were on course to grow 30.5% in 2020, according to IMF estimates—with wide discrepancies between different product bands. Any assessment of the pricing picture must take into account extensive grey and black market activities.
CURRENT TRENDS:
Iran’s consumer price index (CPI) annual inflation was posted at 45.2% in the fifth Persian calendar month (Mordad, corresponding to July 21- August 20), the Statistical Centre of Iran (SCI) reported on August 24. It was the highest figure recorded since 1994, when an official rate of 49.5% was registered.
The rate for food was 58%, putting pressure on poor and previously
20 IRAN Country Report November 2021 www.intellinews.com