Iran Inflation Grows 34.9% YOY (Nov 2018)

EghtesadOnline: The goods and services Consumer Price Index in Iran registered a year-on-year increase of 34.9% in the Iranian month Aban (Oct. 23-Nov. 21) compared with the similar month of last year, the Statistical Center of Iran reported.

News ID: ۷۴۶۲۶۵

26 November 2018

The overall CPI (using the Iranian year to March 2017 as the base year) stood at 147.8 in Aban, indicating a 2.6% rise compared with the previous month.

The CPI Index for 12 months ending November 21 increased by 15.6% compared with last year’s corresponding period.

SCI had put the inflation rate for the preceding month of Mehr, which ended on Oct. 22 at 13.4%. It put urban and rural 12-month inflation for Aban at 15.6% and 15.4%, respectively, Financial Tribune reported.

The overall CPI reached 147.3 for urban households and 150.8 for rural households, indicating an increase of 2.6% for urban areas and 2.7% for rural areas compared with the previous month.

The index registered a year-on-year increase of 34.5% for urban areas and 37.3% for rural areas compared with the similar month of last year.

CPI Changes in Basket of Goods & Services

The highest month-on-month inflation among 12 goods and services groups was recorded for the “furniture and home appliances” group with a 5.9% rise.

The “tobacco” group saw a month-on-month deflation of 1.9% in its prices among these groups.

Interestingly, the “tobacco” group registered the highest year-on-year CPI increase among the 12 groups of goods and services with 160%.

The “housing, water, electricity, natural gas and other fuels” group posted the lowest year-on-year CPI increase with 20.2%.

The inflation rate of “tobacco” group was the highest in the period with 59.7% and that of “health and treatment” group had the slowest average annual inflation rate with 11.6%.

Income Decile Inflation

The inflation gap measured by SCI between the first income decile (those with the lowest income) and the 10th decile (those with the highest income) increased 0.4% to reach 2% for the same month under SCI review compared with the previous month’s 1.6%.

The average goods and services CPI in the 12 months increased by 14.8% for the first decile whereas it rose by 16.8% for the 10th decile.

The fourth and fifth deciles saw their 12-month average inflation rate grow by 15.7% compared with last year’s corresponding period. The annual inflation rate for the second decile increased by 15.4% in Aban, third decile by 15.6%, sixth by 15.8%, seventh by 16.1%, eighth by 16.2% and ninth decile by 16.4%.

The highest overall CPI (using the Iranian year to March 2017 as the base year) stood at 150 for the 10th decile and the lowest index was registered at 147.7 for the first decile.

The year-on-year inflation rates increased by 34.1% for the first decile, 35.5% for second, 35.6% for third and fourth, 35.5% for fifth and sixth, 36.3% for seventh, 36.4% for eighth, 36.6% for ninth and 37.6% for 10th decile.

Income deciles are groupings that result from ranking either all households or all persons in the population in the ascending order according to income, and then dividing the population into 10 groups, each comprising approximately 10% of the estimated population.