Page 18 - IRANRptDec19

In the clothing and footwear category, the recorded increase was 51.5% y/y, with a 2% increase m/m.
Customers of utilities still under government ownership experienced a 23.8% y/y rise in prices, indicating a 4.4% increase m/m.
Furniture, home appliances and maintenance saw a a 42.3% increase y/y with a m/m increase of 1.4% from the sixth Persian calendar month.
In the health and treatment category, the CPI stood at 25.1% y/y with a m/m increase of 2.6%.
Transportation indicated a y/y increase of 28.3% in the period, indicating a 1% increase m/m.
In communications, which includes mobile and landline connections, inflation stood at 30.5% y/y, with a 2.2% m/m increase.
Leisure and culture saw an increase of 33.8% y/y, with the m/m increase posted at 2.1%.
In the education category, a significant increase month on month was witnessed due to the first term of the new academic year commencing with fees increasing. A y/y increase of 22.7% and an m/m advance of 12.7% were recorded by the SCI.
4.2.2​ PPI dynamics
Iran’s PPI up 53.9% y/y in 10th month of Persian year
PMI for Iran falls into contraction territory
The SCI announced that its analyses showed that the current PPI rate in the country stood at 53.9% in the 10th Persian calendar month. That indicates that Iran is entering hyperinflation territory.
This is in comparison to just an increase of 15.2% y/y in the fifth month of the 2018/2019 Persian calendar year (ended August 22).
The rise 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 feed-through into inflation.
A purchasing managers’ index (PMI) provided by the Iran Chamber gives the Islamic Republic a reading of 45.79 in the fifth Persian calendar month (ended August 22) compared to 50.07 in the preceding month and 50.66 in the month before that.
18​ IRAN Country Report​ December 2019 www.intellinews.com