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open currency markets. The growing enmity between Iran and the US Trump administration have nevertheless pushed up the dollar, euro and pound sterling against the IRR, leading to prices of everyday household goods rising.
However, some academics have claimed that realistic calculations show that the inflation rate in Iran is running at more than 200%. Meanwhile, the Statistical Centre of Iran (SCI) stated that the inflation rate for the 12 months to July 21 stood at 8.7%.
4.2.2 PPI dynamics
Iran’s PPI at 12% y/y in third month of Persian year
Iran’s annual producer price index (PPI) came in at 12% y/y for the third month of the 2018/2019 Persian calendar year (ended April 20) and was up 2.2pp m/m, the Central Bank of Iran (CBI) said on June 30.
The increases in the PPI can be partly ascribed to the severe devaluation of the Iranian rial (IRR) seen in recent months, with producers raising their prices to compensate for the negative effects of inflation. The Iranian government has acted to calm producer inflation with its fixed rate of IRR42,000 to the dollar locked in for trading all essential commodities.
The CBI takes the Persian calendar year of 1390 (2011-2012) as the base year in its PPI calculations.
According to the released data for the third month, farming and agriculture stood at 12.6%, warehousing and logistics at 7.8%, the medical at sector 9.2%, education at 12.4%, telecommunications at 4.5%, hotel and restaurants at 12.1% and production and retail at 13.6%
4.3 Labour and income
4.3.1 Labour market, unemployment dynamics
Iran announces minimum wage hike of 19.6%, beating inflation of 10%
Minimum wage increases above or in line with inflation have been announced by Iran’s Supreme Labour Council, the Financial Tribune reported on April 15 citing Mehr News Agency.
Iranians earning the minimum wage will see their basic monthly salary increase 19.55% from Iran rial (IRR) 9.29mn to IRR11.06mn (€208) for the
15 IRAN Country Report September 2018 www.intellinews.com