Rich-Poor Inflation Gap at 8.3%

EghtesadOnline: The average annual inflation gap measured by the Statistical Center of Iran among income deciles stood at 8.3% in the first Iranian month (March 21-April 20), indicating a 0.5 percentage point decrease compared with the previous month (8.8%).

News ID: ۷۸۶۴۰۹

28 April 2021

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.

The inflation gap in “food, beverages and tobacco” group among income deciles increased by 0.3 percentage points and that of “non-food and services” group widened by 0.6 percentage point compared with the month before.

The average goods and services Consumer Price Index in the 12-month period ending April 20 increased by 37.5% for the first decile (those with the lowest income) while it grew 45.8% for the 10th decile (those with the highest income).

“Food, beverages and tobacco” group inflation increased by 45.4% for the first decile and 40.8% for the 10th decile. “Non-food and services” group inflation grew by 29.8% for the first decile and 47.1% for the 10th decile.

Average annual inflation rates grew by 38.1% for the second decile compared with last year’s corresponding period, 38% for the third decile, 37.8% for the fourth and fifth deciles, 37.9% for the sixth decile, 38.9% for the seventh decile, 39.5% for the eighth decile and 41.6% for the ninth decile.

The highest overall CPI (using the Iranian year to March 2017 as the base year) stood at 325.9 for the 10th decile and the lowest calculated was 303.2 for the first decile.

The first, ninth and 10th deciles registered a 2.6% month-on-month inflation while second, third, fourth, fifth, seventh and eighth deciles saw a monthly inflation of 2.7%. The sixth decile posted a month-on-month inflation of 2.8%.

The year-on-year inflation rates increased by 50.3% for the first deciles during the month under review, 51.2% for second, 50.6% for third, 50% for fourth, 49.7% for fifth, 49.3% for sixth, 49.6% for seventh, 49.5% for eighth, 50.4% for ninth and 52.7% for 10th decile.