Iran: Consumer Prices Up 36%

EghtesadOnline: The average goods and services Consumer Price Index in the 2020-21 fiscal year, increased by 36.4% compared to the corresponding period the year before, the Statistical Center of Iran reported. It put last fiscal’s urban and rural annual inflation at 36.2% and 37.7%, respectively.

News ID: ۷۸۶۴۱۸

05 May 2021

Average CPI (using the Iranian year to March 2017 as base year) was 252.6 -- 250.6 for urban areas, and 263.5 for rural areas, indicating 1.6%, 1.8%, and 0.4% rise, respectively, over the year before.

Consumer price of the “food, beverages and tobacco” group on average increased by 39% -- for urban areas it was 38.7% and 39.9% in rural areas, indicating 3.6%, 4%, and 2.3% decline compared to the year before.

For the “non-food goods and services” group prices increased by 35.2%. In urban areas it shot up 35.1% and in rural regions 35.8% -- indicating 3.8%, 4%, and 2.3% growth, respectively, compared with the year before.

The highest monthly inflation rates last year were registered in the month ending October 21 with 7%; month ending July 21 it was 6.4%; and the fiscal month to Nov. 20 at 5.2%.

The lowest monthly inflation rates were logged in the month ending March 20 at 1.8%; the month ending Jan. 19, 2021 with 1.8%; and the month ending June 20, 2020 with 2%.

Average monthly inflation rate for the overall CPI, “food, beverages, and tobacco” group and for “non-food and services” group stood at 3.4%, 4.4%, and 2.9% respectively.

Decline in the average annual inflation rate was registered up until the month to August 21. From then on inflation climbed until the Iranian year ended on March 20.

Year-on-year inflation was of the ascending throughout the year except for the month ending Dec. 20. As such, it increased from 19.8% in the first month (March 20-April 19, 2020) to 48.7% in the last month (Feb. 19-March 20, 2021).

Annual inflation rate was 36.4% in fiscal 2020-21. Different income deciles, however, faced different inflation challenges --from 34.6% for the first decile (lowest income) to 43.5% for the tenth (highest income.)

Annual inflation rate for the “food, beverages, and tobacco” group ranged from 36.5% for the 10th decile to 41.2% for the second. For “non-food goods and services” group it ranged from 28.6% for the first decile to 45.3% for the tenth.

The average annual inflation gap among income deciles reached 8.9% last year, indicating 6.2 percentage point growth compared to the year before.

The highest annual inflation rate was registered for households in Kermanshah Province (40.1%) and the lowest in Markazi Province at 33.3%. Provincial inflation gap stood at 6.8% last year, which was 4.5 percentage points compared with the year before.

The highest price rise for food items was in the “bread and grains” group including lentils and split peas, beans, peas, and imported rice; “fruits and nuts” group including bananas, limes, oranges, and pomegranates; “dairy, egg, and edible oils” group including  pasteurized cream and eggs. However, the price of potatoes, onions, and tomato paste declined last year.