Rich-Poor Divide Rises to 3%

EghtesadOnline: The average annual inflation gap measured by the Statistical Center of Iran among income deciles increased 0.1% to reach 3% in the Iranian month ending June 21 compared with the previous month’s 2.9%.

News ID: ۷۴۷۶۹۵

26 June 2019

The average goods and services Consumer Price Index in the 12-month period ending June 21 increased by 37.1% for the first decile (those with the lowest income) whereas it rose by 40.2% for the 10th decile (those with the highest income).

The second and third deciles saw their 12-month average inflation rates grow by 38.3% compared with last year’s corresponding period.

The annual inflation rate for the fourth decile increased by 38.2% in the same month, the fifth decile 38.1%, the sixth decile 37.9%, the seventh decile 38.6%, the eighth 38.7% and the ninth decile 39%, according to Financial Tribune.

The highest overall CPI (using the Iranian year to March 2017 as the base year) stood at 179.1 for the 10th decile and the lowest index was 173.8 for the first decile.

The year-on-year inflation rates increased by 50.1% for the first decile during the month under review, 51.2% for second, 51% for third, 50.9% for fourth, 50.8% for fifth, 50.4% for sixth, 51.2% for seventh, 51.3% for eighth, 52% for ninth and 53.8% 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 50.4% in the Iranian month ending June 21 compared with the similar month of last year.

The overall CPI stood at 174.9, indicating a 0.8% rise compared with the previous month.

The goods and services Consumer Price Index in the 12-month period ending June 21 increased by 37.6% compared with last year’s corresponding period.

SCI had put the inflation rate for the preceding Iranian month, which ended on May 21, at 34.2%.

Year-on-year and annual consumer price inflation measured for rural areas indicate a rate higher than that of urban areas last month. The index registered a year-on-year increase of 49.3% for urban areas and 56.5% for rural areas compared with the similar month of last year.

The overall CPI reached 173.3 for urban households and 183.3 for rural households, indicating an increase of 0.8% for urban areas and 0.7% for rural areas compared with the previous month.

SCI put urban and rural 12-month inflation for the month under review at 36.9% and 41% respectively.