Rich-Poor Inflation Gap at 9.2%

EghtesadOnline: The average annual inflation gap measured by the Statistical Center of Iran among income deciles stood at 9.2% in the 11th Iranian month (Jan. 20-Feb. 18), indicating a 0.3 percentage point decline compared with the previous month (9.5%).

News ID: ۷۸۶۰۹۲

23 February 2021

The inflation gap in “food, beverages and tobacco” group among income deciles increased by 0.2 percentage points and that of “non-food and services” group widened by 0.7 percentage point compared with the month before.

The average goods and services Consumer Price Index in the 12-month period ending Feb. 18 increased 32% for the first decile (those with the lowest income) while it grew 41.3% for the 10th decile (those with the highest income).

The “food, beverages and tobacco” inflation increased by 36.5% for the first decile and 32.3% for the 10th group. “Non-food and services” inflation grew by 27.7% for the first decile and by 43.6% for the 10th decile.

Average annual inflation rates grew by 32.7% for the second, third and fourth deciles compared with last year’s corresponding period; 32.8% for the fifth decile; 33.1% for the sixth decile; 34.2% for the seventh decile; 34.9% for the eighth decile and 37.1% for the ninth decile.

The highest overall CPI (using the Iranian year to March 2017 as the base year) stood at 312.6 for the 10th decile and the lowest was registered for the first decile at 290.6.

The first and second deciles registered a 3% month-on-month inflation; third 2.9%; fourth 2.8%, fifth 2.7%; sixth 2.6%; seventh 2.5%; eighth 2.4%; ninth 2.1% and the 10th decile saw monthly inflation of 1.9%.

The year-on-year inflation rates increased by 49.5% for the first decile during the month under review, 50.2% for second, 49.7% for third, 49.1% for fourth, 48.7% for fifth, 48.4% for sixth, 48.9% for seventh, 48.8% for eighth, 49.9% for ninth and 52.4% 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.

Irrespective of income deciles, the average goods and services Consumer Price Index in the 12-month period ending Feb. 18 increased by 34.2% year-on-year.

SCI had put the average annual inflation rate for the preceding Iranian month, which ended on Jan. 19, at 32.2%.

The consumer inflation for the month under review (Jan. 20-Feb. 18) registered an increase of 48.2% compared with the similar month of the previous Iranian year. The year-on-year inflation of the month ending Jan. 19 was 46.2%.

The overall CPI (using the Iranian year to March 2017 as the base year) stood at 292.8, indicating a 2.5% rise compared with the month before. Month-on-month consumer inflation was at 1.8% for the preceding month.

SCI put average annual inflation for urban and rural areas at 34.1% and 35%, respectively.

CPI registered a year-on-year increase of 47.2% for urban areas and 53.6% for rural areas in the month ending Feb. 18.

The overall CPI reached 289.5 for urban households and 311.2 for rural households, indicating a month-on-month increase of 2.4% and 3.3% for urban and rural areas, respectively.

The highest monthly growth in the index among 12 groups of the basket of consumer goods and services purchased by households in the Iranian month ending Feb. 18 was recorded for food and beverages with 5.3% while a monthly deflation of 1.5% was posted by communications group.

The highest year-on-year inflation in the month under review was posted for food and beverages (67.2%) while the lowest YOY inflation were registered for education and communication groups with 21.8%.

The highest and lowest annual inflation was registered for transportation with 65.3% and communications with 15.1%.