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Iranian rial’s (IRR’s) value against foreign currencies over the past year on the 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.
The central bank listed the m/m figures as follows in its latest inflation data: food and beverages +2.5pp, tobacco +2.5pp, clothing and footwear +2.0pp, housing and utilities +0.6pp, home furnishings +3.9pp, health +0.6pp, transport +2.5pp, communications +2.4pp, recreation and culture +4.7pp, education +0.1pp, restaurants and hotels +1.5pp, and miscellaneous goods and services +3.1pp m/m.
The Statistical Centre of Iran (SCI), which publishes its own inflation figures, says Iran’s CPI rate for the 12-month period to May 21 stood at 8%. Inflation in Iran was high in the double digits during the Ahmadinejad administration, which ended in 2013.
4.2.2 PPI dynamics
Iran’s PPI at 10.8% y/y in first month of Persian year
Iran’s annual producer price index (PPI) came in at 10.8% y/y for the first month of the 2018/2019 Persian calendar year (the month ended on April 20) and was up 0.3pp m/m, the Central Bank of Iran (CBI) said on May 4.
The increases in the PPI can be partly ascribed to the pronounced devaluation of the Iranian rial (IRR) seen in recent months, with producers raising their prices to compensate for the negative effects of inflation. Markets in Iran have been unnerved by various negatives including the fragile fate of the multilateral nuclear deal which presently protects Iran from crippling economic sanctions, but which may unravel if US President Donald Trump withdraws Washington from the accord, which will occur on May 8 according to a Trump tweet.
The CBI takes the Persian calendar year of 1390 (2011-2012) as the base year in its PPI calculations.
13 IRAN Country Report June 2018 www.intellinews.com