Rich-Poor Inflation Gap at 6.5%

EghtesadOnline: The average annual inflation gap measured by the Statistical Center of Iran among income deciles stood at 6.5% in the sixth Iranian month (Aug. 22-Sept. 21), indicating a 1.1 percentage point increase compared with the previous month.

News ID: ۷۵۱۱۳۹

29 September 2020

The inflation gap in “food, beverages and tobacco” group among income deciles increased by 0.5 percentage points and that of “non-food and services” group widened by 1.8 percentage point compared with the month before.

The average goods and services Consumer Price Index in the 12-month period ending Sept. 21 increased 23.4% for the first decile (those with the lowest income) while it grew 29.9% for the 10th decile (those with the highest income).

“Food, beverages and tobacco” group inflation increased 21.6% for the first decile and 20.8% for the 10th group. “Non-food and services” group inflation grew 25.1% for the first decile and 32.3% for the 10th group.

Average inflation rates grew by 24% for the second decile compared with last year’s corresponding period; 24.3% for the third decile; 24.6% for the fourth decile; 24.8% for the fifth decile; 25.1% for the sixth decile; 25.8% for the seventh decile; 26.3% for eighth decile and 27.6% for the ninth decile.

The highest overall CPI (using the Iranian year to March 2017 as the base year) stood at 267.3 for the 10th decile and the lowest calculated was 235.6 for the first decile. The first decile registered a 2.8% month-on-month inflation growth.

Monthly inflation growth was 2.9% for second, third, fourth and fifth deciles, 3% for sixth decile, 3.2% for seventh decile, 3.4% for eighth decile, 4.1% for the ninth decile and 5.3% for the tenth decile.

The year-on-year inflation rates increased by 31.1% for the first decile during the month under review, 31.7% for second, 31.9% for third, 32% for fourth, 32.2% for fifth, 32.7% for sixth, 34.2% for seventh, 35.4% for eighth, 38.5% for ninth and 44.6% 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.