Food Retail Prices, CPI Changes in Iran Provinces (November 2018)

EghtesadOnline: The retail prices for tomato paste in the Iranian month Aban (ending Nov. 21) increased by 244.4% compared with the same period of last year.

News ID: ۷۸۴۳۶۸

03 December 2018

A kilogram of tomato paste went for an average of 183,843 rials ($1.55) in the month, to register the highest year-on-year price rise for a food item, the Statistical Center of reported.

Iran has tomato production, which allows processing industries to sufficiently meet the domestic demand for the food item, which is used in many Persian dishes. However, excessive exports of tomatoes and tomato paste in recent months, especially to Iraq, for increased profits amid the depreciation of Iran's local currency, led to their shortage in local markets.

Exports of tomato paste were banned since October 12 on the order of Industries Ministry, according to Financial Tribune.

The ban has now been lifted until further notice, following a letter sent by the Minister of Industries, Mining and Trade Reza Rahmani to the Islamic Republic of Iran Customs Administration on Nov. 21.

The second and third biggest year-on-year price rise in Aban among food items was registered for bananas and apples and amounted to 165.7% and 103.6%, respectively. A kilogram of bananas was sold at 123,305 rials ($1.04) and a kilogram of apples went for 72,641 rials (61.5 cents).

The Iranian month under review saw prices of cucumbers rise by 33.8% compared with the month before, the highest month-on-month price rise among food items. The second and third biggest month-on-month price rise during the period under review was recorded for milk with 12.1% and bananas with 7.5%.

There were no year-on-year price declines for food items in Aban, but the prices of oranges and potatoes decreased by 27% and 16.1% compared with the month before. A kilogram of oranges and potatoes were sold at 56,207 rials (47.6 cents) and 28,841 rials (24.4 cents).

The Consumer Price Index for 'food and beverages' (using the Iranian year to March 2017 as the base year) stood at 166.1 in Aban, indicating a 4.3% rise compared with the previous month.

The 'food and beverages' index registered a year-on-year increase of 48% compared with the similar month of last year.

The CPI for 'food and beverages' group in the 12-month period ending Nov. 21 increased by 19.8% compared with last year’s corresponding period, SCI reported.

Provincial Divide

The goods and services Consumer Price Index in the southern Sistan-Baluchestan Province registered a year-on-year increase of 42.6% in Aban (Oc. 23-Nov. 21) compared with the similar month of last year—the highest among all Iranian provinces.

The year-on-year CPI increase was the lowest for Kerman Province with 28.8%, the Statistical Center of Iran reported.

Annual inflation gap among provinces was 7% in Aban, indicating a 1% increase compared with the month before.

The average goods and services CPI in Iran registered a YOY increase of 34.9% in the same month compared with the similar month of last year.

The overall CPI calculated for the country (using the Iranian year to March 2017 as the base year) stood at 147.8, indicating a 2.6% rise compared with the previous month. The growth in the overall CPI compared with the previous month, Mehr (Sept. 23-Oct. 22), was the highest (4.3%) for East Azarbaijan Province and lowest (1.4%) for Hamedan province.

The average goods and services CPI in Iran in the 12-month period ending Nov. 21 increased by 15.6% compared with last year’s corresponding period.

Lorestan registered the highest 12-month inflation with 19.2% while Kerman posted the lowest of 12.2%.