Rich-Poor Inflation Gap at 6.8%

EghtesadOnline: The average annual inflation gap measured by the Statistical Center of Iran among income deciles stood at 6.8% in the third Iranian month (May 22-June 21), indicating a 0.6 percentage point decrease compared with the previous month (7.4%).

News ID: ۷۸۶۵۶۸

30 June 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 reduced by 0.1 percentage point compared with the month before.

The average goods and services Consumer Price Index in the 12-month period ending June 21 increased by 42.8% for the first decile (those with the lowest income) while it grew by 49.1% for the 10th decile (those with the highest income).

The annual inflation of “food, beverages and tobacco” group increased by 54% for the first decile and 48.7% for the 10th decile. “Non-food and services” inflation grew 32% for the first decile and 49.2% for the 10th decile.

Average annual inflation rates grew by 43.2% for the second decile compared with last year’s corresponding period, 42.9% for the third decile, 42.5% for the fourth, 42.3% for fifth and sixth deciles, 43.1% for the seventh decile, 43.5% for the eighth decile and 45.3% for the ninth decile.

The highest overall CPI (using the Iranian year to March 2017 as the base year) stood at 336.7 for the 10th decile and the lowest was 313.5 for the first decile.

The first decile registered a 2.9% month-on-month inflation, the second, third and 10th deciles saw a monthly inflation of 2.8% and other deciles posted a 2.7% month-on-month inflation rates.

The year-on-year inflation rates increased by 51.6% for the first decile during the month under review, 51.2% for second, 50.2% for third, 49.2% for fourth, 48.7% for fifth, 48% for sixth, 47.9% for seventh, 47.3% for eighth, 47.4% for ninth and 48.6% 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 June 21, which marks the end of the third Iranian month of fiscal 2021-22, increased by 43% compared with the corresponding period of the year before, latest data released by the Statistical Center of Iran show.

The annualized inflation has been on the rise for the 10th consecutive month.

SCI had put the average annual inflation rate for the preceding Iranian month, which ended on May 21, at 41%.

The consumer inflation for the month under review (May 22-June 21) registered an increase of 47.6% compared with the similar month of the previous Iranian year. The year-on-year inflation of the month ending May 21 was 46.9%.

The overall CPI (using the Iranian year to March 2017 as the base year) stood at 316.2 in the last fiscal month, indicating a 2.5% rise compared with the month before. Month-on-month consumer inflation was 0.7% for the preceding month.

SCI put urban and rural 12-month inflation for the month under review at 42.5% and 45.6%, respectively.

CPI registered a year-on-year increase of 46.9% for urban areas and 51.5% for rural areas in the month ending June 21.

The overall CPI reached 312.6 for urban households and 336.3 for rural households, indicating a month-on-month increase of 2.5% and 2.6%, 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 June 21 was recorded for “clothing and shoes” group with 4.2% while “communications” group posted a deflation of 0.7%.

The highest year-on-year inflation in the month under review was posted for “furniture, home appliances and their maintenance” with 66% while the lowest YOY inflation was registered for “communications” group with 11.8%.

The highest and lowest annualized inflation was registered for “transportation” group with 64.8% and communications with 18.7%.

With a coefficient of 26.64%, the CPI of “food and beverages” for all Iranian households stood at 404.3 in the month ending June 21, indicating a 3.2% increase compared with the month before. The index registered a year-on-year increase of 62.7%.

The CPI of the group increased by 51.8% in the 12-month period ending June 21 compared with last year’s corresponding period.