Inflation Highest for Upper Middle-Income Households

EghtesadOnline: The Statistical Center of Iran has released its latest report on inflation for each of the 10 deciles in which Iranian households are categorized on the basis of their income.

News ID: ۷۸۳۴۵۲

29 July 2018

According to the report, the average goods and services Consumer Price Index in the 12-month period ending July 22, which marks the end of the Iranian month of Tir, increased by 8.4% for the first decile (those with the lowest income), whereas it rose by 8.8% for the 10th decile (those with the highest income) as well as for fourth and fifth deciles, compared with last year’s corresponding period.

The inflation rate for the second decile was put at 8.6%, third decile at 8.7%, and sixth, seventh, eighth and ninth at 8.9%.

The highest overall CPI (using the Iranian year to March 2017 as the base year) stood at 122.2 for the eighth decile and the lowest index was at 120.6 registered for the first decile, Financial Tribune reported.

The year-on-year inflation rates increased by 12.2% for the first decile, 13.1% for the second,13.4% for the third, 13.7% for the fourth, 13.8% for the fifth, 14% for the sixth, 14.4% for the seventh, 14.5% for the eighth, 14.7% for the ninth, and 15.1% for the tenth 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.

Regardless of income deciles, SCI earlier reported that the overall goods and services Consumer Price Index in the 12-month period ending July 22, increased by 8.7% compared with last year’s corresponding period.

It had put the inflation rate for the preceding month of Khordad, which ended on June 21, at 8.2%.

The overall CPI (using the Iranian year to March 2017 as the base year), according to the center, stood at 121.4 in Tir, indicating a 4.4% rise compared with the previous month. The index registered a year-on-year increase of 13.8% compared with the similar month of last year.

SCI put urban and rural 12-month inflation for Tir at 8.8% and 8.2% respectively. The overall CPI reached 121.5 for urban households and 120.9 for rural households, indicating an increase of 4.6% for urban areas and 3.2% for rural areas compared with the previous month.

The index registered a year-on-year increase of 14% for urban areas and 12.7% for rural areas compared with the similar month of last year.

The SCI report came before the Central Bank of Iran put the inflation for urban areas in the 12 months ending July 22 at 10.2%.

CBI had put the inflation rate for the preceding month, which ended on June 21, at 9.4%.

The overall CPI, according to CBI, stood at 126.8 in Tir, indicating a 3.4% increase compared with the previous month. The index registered a year-on-year increase of 18% compared with the similar month of last year.