Iran Inflation at Record High

EghtesadOnline: The annualized inflation rate in Iran has reached a record high.

News ID: ۷۸۶۸۸۹

25 August 2021

Latest data released by the Statistical Center of Iran show the average goods and services Consumer Price Index in the 12-month period ending Aug. 22, which marks the end of the fifth Iranian month of fiscal 2021-22, increased by 45.2% compared with the corresponding period of the year before.

The rate is an all-time high since the fiscal 2017-18 when SCI started recording the earliest statistics on CPI in Iran.

SCI had put the average annual inflation rate for the preceding Iranian month, which ended on July 22, at 44.2%.

Consumer inflation for the month under review (July 23-Aug. 22) registered an increase of 43.2% compared with the similar month of the previous Iranian year. The year-on-year inflation of the month ending July 22 was 43.6%.

The overall CPI (using the Iranian year to March 2017 as the base year) stood at 337.8 for the month under review, indicating a 3.2% rise compared with the previous month. Month-on-month consumer inflation was 3.5% for the preceding month.

SCI put average inflation for urban and rural areas at 44.5% and 48.7%, respectively.

CPI registered a year-on-year increase of 42.4% for urban areas and 47.7% for rural areas in the month ending Aug. 22.

The overall CPI reached 334.1 for urban households and 358.1 for rural households, indicating a month-on-month growth of 3.2% for each.

The highest and lowest monthly growth in the index among 12 groups of the basket of consumer goods and services purchased by households in the Iranian month ending Aug. 22 was recorded for “Food and Beverages” group with 4.6% and “Communications” and “Education” groups with 1% each.

The highest year-on-year inflation in the month under review was posted for “Hotels and Restaurants” with 63.1% while the lowest YOY inflation was registered for “Communications” group with 7.3%.

The highest and lowest annualized inflation was registered for “Transportation” with 61.3% and “Communications” with 17.8%.

Food and Beverages

With a coefficient of 26.64%, the CPI of “Food and Beverages” for all Iranian households stood at 436.5 in the month ending Aug. 22, indicating a 4.6% increase compared with the month before. The “Food and Beverage” index registered a year-on-year increase of 59.2%. The CPI of the group increased by 57.4% in the 12-month period ending Aug. 22 compared with last year’s corresponding period.

Tobacco

The CPI of “Tobacco” stood at 486.4, indicating a 1.7% rise compared with the month before. The “Tobacco” index, which has minimum impact on the total inflation rate with a coefficient of 0.59%, registered a year-on-year increase of 32.4%. The annualized CPI of the group grew by 45.5% compared with the corresponding period of the year before.

Clothing and Shoes

With a coefficient of 4.78%, the CPI of “Clothing and Shoes” stood at 395.3, indicating a 2.9% increase compared with the month before. The “Clothing and Shoes” index registered a year-on-year increase of 54.8% during the month under review. The average annual CPI of the group increased by 49.8% compared with last year’s corresponding period.

Housing and Utilities

The CPI of “Housing and Utilities (water, electricity, natural gas and other fuels)” stood at 235.8, indicating a 2.2% rise compared with the month before. The group’s CPI index, which has the biggest impact on total inflation rate with a coefficient of 35.5%, registered a year-on-year increase of 24.3%. The annualized CPI of the group was at 27%.

Furniture, Home Appliances and Their Maintenance

With a coefficient of 3.93%, the CPI of “Furniture, Home Appliances and Their Maintenance” stood at 466.2, indicating a 2.4% increase compared with the month before. The group’s CPI registered a year-on-year increase of 54.2%. The average annual CPI of the group increased by 60.2% compared with last year’s corresponding period.

Health and Treatment

The CPI of “Health and Treatment” group stood at 278.9, indicating a 3.6% increase compared with the month before. The index, with a coefficient of 7.14%, registered an increase of 43.7% compared with the similar month of last year. The group’s annual inflation during the month under review stood at 38.5%.

Transportation

With a coefficient of 9.41%, the CPI of “Transportation” stood at 430.3, indicating a 3.6% increase compared with the month before. The “Transportation” index registered a year-on-year increase of 44.3%. The annualized CPI of the group increased by 61.3% compared with the similar period of the year before.

Communications

The CPI of “Communications” stood at 178.1, indicating a 1% rise compared with the month before. The index, with a coefficient of 2.87%, registered a year-on-year increase of 7.3%. The group’s annualized inflation was at 17.8%.

Leisure and Culture

The CPI of “Leisure and Culture” group stood at 432.5, indicating a 2.1% rise compared with the month before. The index, with a coefficient of 1.65%, registered a year-on-year increase of 45.2%. The group’s annualized inflation stood at 52.3%.

Education

With a coefficient of 1.86%, the CPI of “Education” group stood at 221.1, indicating a 1% rise compared with the month before. The group’s CPI index registered a year-on-year increase of 20.3%. The annualized CPI of the group increased by 22% compared with last year’s corresponding period.

Hotels and Restaurants

The CPI of “Hotels and Restaurants” stood at 360.9, indicating a 3.8% rise compared with the month before. The index, with a coefficient of 1.44%, registered a year-on-year increase of 63.1%. The group’s annualized inflation has been put at 47.2%.

Miscellaneous Goods and Services

The CPI of goods and services categorized in the “Miscellaneous” group stood at 374.5, indicating a 2% growth compared with the month before. The index, with a coefficient of 4.18%, posted a year-on-year increase of 42.8%. The group’s average annual inflation stood at 46.3%.