Rich-Poor Inflation Gap Narrows in Iran

EghtesadOnline: The average annual inflation gap measured by the Statistical Center of Iran among income deciles decreased 0.2% to reach 2.8% in the first Iranian month (March 21-April 20) compared with the previous month’s 3%.

News ID: ۷۴۷۱۸۱

29 April 2019

The average goods and services Consumer Price Index in the 12-month period ending April 20 increased by 29.9% for the first decile (those with the lowest income) whereas it rose by 32.7% for the 10th decile (those with the highest income).

The second, fifth and sixth deciles saw their 12-month average inflation rate grow by 31% compared with last year’s corresponding period.

The annual inflation rate for the third and fourth deciles increased by 31.1% in Farvardin, seventh decile 31.5%, eighth 31.6% and ninth decile 31.8%, according to Financial Tribune.

The highest overall CPI (using the Iranian year to March 2017 as the base year) stood at 174.7 for the second decile and the lowest index was 172.5 for the ninth decile.

The year-on-year inflation rates increased by 53.6% for the first and fourth deciles during the month under review, 54.4% for second, 53.9% for third, 53.2% for fifth, 52.5% for sixth and ninth deciles, 52.9% for seventh, 52.7% for eighth and 53.2% for the 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.

The consumer inflation registered a year-on-year increase of 51.4% in the month to April 20 compared with the similar month of last year, SCI reported.

The overall CPI (using the Iranian year to March 2017 as the base year) stood at 170.9 in the month ending April 20, indicating a 4% rise compared with the previous month.

The goods and services Consumer Price Index in the 12-month period ending April 20 increased by 30.6% compared with last year’s corresponding period.

SCI had put the inflation rate for the preceding Iranian month, which ended on March 20, at 26.9%.

Consumer price inflation in rural areas persisted at a higher rate than that of urban areas last month. The index registered a year-on-year increase of 50% for urban areas and 59.4% for rural areas compared with the similar month of last year.

The overall CPI reached 169.3 for urban households and 180.1 for rural households, indicating an increase of 3.7% for urban areas and 5.8% for rural areas compared with the previous month.

The SCI put urban and rural 12-month inflation for the month ending April 20 at 30.2% and 32.6% respectively.