SCI Reviews Food Inflation

The biggest month-on-month price rise for a food item in urban areas during the month under review was recorded for Persian melon with 24.4%, such that a kilo of Persian melon was sold at 99,705 rials (40 cents). 

The second and third biggest month-on-month price increases during the period under review were registered for watermelon with 15.1% and potatoes with 14.7%, the Statistical Center of Iran reported. 

A kilogram of watermelon was sold at 46,955 rials (19 cents) and a kilogram of potatoes went for 62,157 rials (25 cents) last month. 

Four out of 53 food items examined by SCI this month saw a price decline in the third Iranian month (May 22-June 21) compared with the month before. Peaches with 15.4%, oranges with 8.8% and lamb with 2.2% were three items with the highest month-on-month deflations. 

A kilogram of peaches was sold at 258,949 rials ($1.03), a kilogram of oranges fetched 126,225 rials (50 cents) and a kilogram of lamb went for 1,348,997 rials ($5.39).

Compared with the same month of the year before, retail prices for hydrogenated vegetable oil during the month increased by 141.2%, registering the highest year-on-year price rise for a food item. A kilogram of hydrogenated vegetable oil was sold at 224,464 rials (90 cents). 

The second and third biggest year-on-year price rises in the same month were registered for carrots with 140.4% and soft drinks with 131.9%. A kilo of carrots was sold at 92,094 rials (37 cents) and a 1.5-liter soft drink bottle went for 111,921 rials (45 cents). 

Year-on-year price deflation was registered for one item: limes with a 24.9% year-on-year deflation. A kilogram of limes was sold at 276,770 rials ($1.1). 

The overall average goods and services Consumer Price Index in the 12-month period ending June 21 increased by 43% compared with the corresponding period of the year before, latest data released by the Statistical Center of Iran show.

The annualized inflation has been on the rise for the 10th consecutive month. 

SCI had put the average annual inflation rate for the preceding Iranian month, which ended on May 21, at 41%. 

The consumer inflation for the month under review (May 22-June 21) registered an increase of 47.6% compared with the similar month of the previous Iranian year. The year-on-year inflation of the month ending May 21 was 46.9%. 

The overall CPI (using the Iranian year to March 2017 as the base year) stood at 316.2 in the last fiscal month, indicating a 2.5% rise compared with the month before. Month-on-month consumer inflation was 0.7% for the preceding month.

SCI put urban and rural 12-month inflation for the month under review at 42.5% and 45.6%, respectively. 

CPI registered a year-on-year increase of 46.9% for urban areas and 51.5% for rural areas in the month ending June 21. 

The overall CPI reached 312.6 for urban households and 336.3 for rural households, indicating a month-on-month increase of 2.5% and 2.6%, respectively.

The highest monthly growth in the index among 12 groups of the basket of consumer goods and services purchased by households in the Iranian month ending June 21 was recorded for “clothing and shoes” with 4.2% while “communications” posted a deflation of 0.7%. 

The highest year-on-year inflation in the month under review was posted for “furniture, home appliances and their maintenance” with 66% while the lowest YOY inflation was registered for “communication” with 11.8%. 

The highest and lowest annualized inflation was registered for “transportation” with 64.8% and “communications” with 18.7%. 

With a coefficient of 26.64%, the CPI of “food and beverages” for all Iranian households stood at 404.3 in the month ending June 21, indicating a 3.2% increase compared with the month before. The index registered a year-on-year increase of 62.7%. The CPI of the group increased by 51.8% in the 12-month period ending June 21 compared with last year’s corresponding period.