Iran: Tobacco Products See Highest Rise in Prices (October 2018)

EghtesadOnline: Latest statistics released by the Statistical Center of Iran show the highest inflation among 12 goods and services groups in the Iranian month Mehr (Sept. 23-Oct. 22) was recorded for the “tobacco” group with a 22.7% rise in its consumer price index compared with the month before.

News ID: ۷۸۴۲۶۷

28 October 2018

The group's CPI registered a year-on-year increase of 165.8% compared with the similar month of last year, as its average 12-month inflation stood at 46.6%.

About 20% of Iran’s demand for tobacco are met by domestic production.

Nearly 65% of Iran’s tobacco, amounting over 5,000 tons, are cultivated in Iran's northern Gilan Province, according to Financial Tribune.

The Sixth Five-Year Development Plan (2017-22) has set the target for Iran to be self-sufficient in tobacco production by 2022.

According to the Health Ministry, Iranians smoke about 55 billion cigarettes annually.

Recent data released by the Islamic Republic of Iran Customs Administration show more than 7,626 tons of tobacco worth 2.25 trillion rials ($54.26 million) were imported during the first five months of the current Iranian year (March 21-Aug. 22).

Turkey was the biggest exporter with over 3,206 tons worth $26.11 million. Other major exporters of tobacco to Iran during the period were Germany, Brazil, Thailand, Switzerland, the UAE and Jordan.

The SCI data also show the “transportation” group saw the slowest monthly rise in its services prices with a rise of 2.2%.

CPI of “transportation” registered a year-on-year increase of 33.3% and an average annual inflation of 11.7% while that of “Foods and Beverages” increased by 8.1% month-on-month.

The index registered an increase of 45% YOY compared with the similar month of last year, as its average annual inflation stood at 16.8%.

CPI of “clothing and shoes” increased by 7.3% in Mehr compared with the month before. The index registered an increase of 34.9% YOY and an average annual inflation of 12.1%.

The month-on-month CPI of “housing, water, electricity, natural gas and other fuels” increased by 5%. The index registered a YOY increase of 19.8% and an average annual inflation of 10.9%.

“Furniture and home appliances” CPI increased by 12% in Mehr compared with the month before. The index registered an increase of 52.7% YOY compared with the similar month of last year and an annual inflation of 15.6%.

The index measured for “health and treatment” had a rise of 4.2% MOM, a rise of 18.8% YOY and an annual inflation of 10.5%.

CPI of “communications” increased by 17.6% in Mehr compared with the month before. The index registered an increase of 37.7% YOY compared with the similar month of last year and an annual inflation of 9.3%.

“Recreation and culture” CPI registered a rise of 14.6% MOM, an increase of 59% YOY and a 12-month average inflation of 18.3%.

“Education” CPI posted a monthly inflation of 14.5%, an increase of 21.5% YOY and an annual inflation of 13.2%.

“Hotels and restaurants” CPI increased by 6.5% in Mehr compared with the month before. The index registered a YOY increase of 25% and an average annual inflation of 10.4%.

CPI of “Miscellaneous Goods and Services” increased by 9.9% in Mehr compared with the month before. The index registered an increase of 44.3% YOY compared with the similar month of last year and an annual inflation of 17.1%.

According to SCI, the overall goods and services Consumer Price Index registered an increase of 32.8% YOY in the Iranian month Mehr.

The overall CPI (using the Iranian year to March 2017 as the base year) stood at 144.1 for the month, indicating a 7.1% rise compared with the previous month.

The CPI Index in the 12-month period ending Oct. 22 increased by 13.4% compared with last year’s corresponding period.

SCI had put the inflation rate for the preceding month of Shahrivar, which ended on Sept. 22 at 11.3%.

The center put average 12-month urban and rural inflation for Mehr at 13.4% and 13% respectively. The overall CPI reached 143.6 for urban households and 146.8 for rural households, indicating an increase of 6.8% for urban areas and a rise of 8.3% for rural areas compared with the previous month.

The index registered a year-on-year increase of 32.4% for urban areas and 35.3% for rural areas compared with the similar month of last year.