Iran's Rich-Poor Inflation Gap at 2%

EghtesadOnline: The average annual inflation gap measured by the Statistical Center of Iran among income deciles stood at 2% in the eighth Iranian month (Oct. 23-Nov. 21), indicating a 0.2 percentage point decline compared with the previous month’s 2.2%.

News ID: ۷۴۹۰۵۸

30 November 2019

The inflation gap of “food, beverages and tobacco” group among income deciles increased by 0.2 percentage point whereas that of “non-food and services” decreased by 1.1 percentage point month-on-month.

The average goods and services Consumer Price Index in the 12-month period ending Nov. 21 increased by 40.7% for the first decile (those with the lowest income) while it grew by 42.7% for the 10th decile (those with the highest income).

Average inflation rates grew by 41.7% for the second, seventh and eighth deciles compared with last year’s corresponding period. The annual inflation rate for the third, fourth and fifth deciles increased by 41.6% in the same month, the sixth decile 41.3% and the ninth decile 41.9%, Financial Tribune reported.

The highest overall CPI (using the Iranian year to March 2017 as the base year) stood at 191.5 for the 10th decile, and the lowest calculated was 185.5 for the first decile.

The year-on-year inflation rates increased by 25.6% for the first decile during the month under review, 26.2% for second, 26.4% for third, 26.5% for the fourth decile, 26.7% for fifth and eighth, 26.6% for sixth and seventh, 27% for ninth and 27.6% 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 overall CPI (using the Iranian year to March 2017 as the base year) stood at 187.8 last month, indicating a 1.6% rise compared with the month before, latest data released by the Statistical Center of Iran show.

The consumer inflation registered a year-on-year increase of 27% in the Iranian month Aban (Oct. 23-Nov. 21) compared with the similar month of last year.

The average goods and services CPI in the 12-month period ending Nov. 21 increased by 41.1% compared with last year’s corresponding period. SCI had put the annual inflation rate for the preceding Iranian month, which ended on Oct. 22 at 42%.

The index registered a year-on-year increase of 27% for urban areas and 27.3% for rural areas compared with the similar month of last year.

The overall CPI reached 187 for urban households and 192 for rural households, indicating a month-on-month increase of 1.5% and 1.8% for urban and rural areas, respectively.

SCI put urban and rural 12-month inflation for the month under review at 40.3% and 45.1% respectively.

Last month, price drops were registered in only one out of 12 groups of the basket of consumer goods and services purchased by households, namely “communications”, compared with the month before.