SCI: Rich-Poor Inflation Gap at 7.4%

EghtesadOnline: The average annual inflation gap measured by the Statistical Center of Iran among income deciles stood at 7.4% in the second Iranian month (April 21-May 21), indicating a 0.9 percentage point decrease compared with the previous month (8.3%).

News ID: ۷۸۶۵۰۵

29 May 2021

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 remained unchanged compared with the month before.

The average goods and services Consumer Price Index in the 12-month period ending May 21 increased by 40.1% for the first decile (those with the lowest income) while it grew 47.5% for the 10th decile (those with the highest income).

The group’s inflation rate increased by 49.7% for the first decile and 44.8% for the 10th decile while “non-food and services” group inflation grew by 30.9% for the first decile and 48.2% for the 10th decile.

Average annual inflation rates grew by 40.7% for the second decile compared with last year’s corresponding period; 40.5% for the third decile; 40.2% for the fourth and sixth deciles; 40.1% for the fifth decile; 41.1% for the seventh decile; 41.6% for the eighth decile and 43.5% for the ninth decile.

The highest overall CPI (using the Iranian year to March 2017 as the base year) stood at 327.7 for the 10th decile and the lowest calculated was 304.8 for the first decile.

The first, eighth and ninth deciles registered a 0.5% month-on-month inflation while other deciles saw a monthly inflation of 0.6%.

The year-on-year inflation rates increased by 50% for the first deciles during the month under review, 50.1% for second, 49.4% for third, 48.5% for fourth, 48% for fifth, 47.5% for sixth, 47.3% for seventh, 46.7% for eighth, 46.5% for ninth and 47.1% for 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 overall average goods and services Consumer Price Index in the 12-month period ending May 21, which marks the end of the second Iranian month of fiscal 2021-22, increased by 41% compared with the corresponding period of the year before, latest data released by the Statistical Center of Iran show.

SCI had put the average annual inflation rate for the preceding Iranian month, which ended on April 20, at 38.9%.

The consumer inflation for the month under review (April 21-May 21) registered an increase of 46.9% compared with the similar month of the previous Iranian year. The year-on-year inflation of the month ending April 20 was 49.5%.

The overall CPI (using the Iranian year to March 2017 as the base year) stood at 308.4, indicating a 0.7% rise compared with the month before. Month-on-month consumer inflation was 2.7% for the preceding month.

SCI put urban and rural 12-month inflation for the month under review at 40.5% and 43.2%, respectively.

CPI registered a year-on-year increase of 46.1% for urban areas and 51% for rural areas in the month ending May 21.

The overall CPI reached 304.9 for urban households and 327.8 for rural households, indicating a month-on-month increase of 0.7% for both.

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 May 21 was recorded for “tobacco” group with 3.1% while “communications” group posted the deflation of 1.5%.

The highest year-on-year inflation in the month under review was posted for “furniture, home appliances and their maintenance” with 67.6% while the lowest YOY inflation was registered for “communication” group with 13.8%.

The highest and lowest annual inflation rates were registered for “transportation” with 65.1% and “communications” with 18.3%.

With a coefficient of 26.64%, the CPI of “food and beverages” for all Iranian households stood at 391.8 in the month ending May 21, indicating a 0.9% decrease compared with the month before. The index registered a year-on-year increase of 61.5%.

The CPI of food and beverage group increased by 47.8% in the 12-month period ending May 21 compared with last year’s corresponding period.