Rich-Poor Inflation Gap at 4%

EghtesadOnline: The average annual inflation gap measured by the Statistical Center of Iran among income deciles stood at 4% in the sixth Iranian month (Aug. 23-Sept. 22), indicating a 1.4 percentage point decrease compared with the previous month (5.4%).

News ID: ۷۸۷۰۸۰

29 September 2021

The inflation gap in “food, beverages and tobacco” group among income deciles decreased by 0.6 percentage points and that of “non-food and services” group reduced by 1.9 percentage point compared with the previous month.

The average goods and services Consumer Price Index in the 12-month period ending Sept. 22 increased by 47.3% for the first decile (those with the lowest income) while it grew by 49.4% for the 10th decile (those with the highest income).

“Food, beverages and tobacco” group’s annual inflation increased by 61.2% for the first decile and 57.5% for the 10th decile. “Non-food and services” inflation grew by 33.8% for the first decile and 47.5% for the 10th decile.

Average annual inflation rates jumped by 47.5% for the second decile compared with last year’s corresponding period; 46.8% for the third decile; 46.2% for the fourth; 45.9% for fifth decile; 45.5% for the sixth decile; 45.9% for the seventh decile; 45.8% for the eighth decile and 46.9% for the ninth decile.

The highest overall CPI (using the Iranian year to March 2017 as the base year) stood at 358.3 for the 10th decile and the lowest was 278.7 calculated for the first decile.

The first deciles registered a 4.2% month-on-month inflation; the second, third and fourth deciles saw a monthly inflation of 4.1%; the fifth, sixth, seventh, ninth and 10th deciles 4%; and the eighth decile posted a 3.9% month-on-month inflation rate.

The year-on-year inflation rates increased by 48.4% for the first decile during the month under review, 48% for the second, 46.8% for third, 46.1% for fourth, 45.4% for fifth, 44.5% for sixth, 43.7% for seventh, 42.7% for eighth, 41.7% for ninth and 40.6% 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 Sept. 22, increased by 45.8% compared with the corresponding period of the year before, marking a record high.

SCI had put the average annual inflation rate for the preceding Iranian month, which ended on Aug. 22 at 45.2%.

The consumer inflation for the month under review (Aug. 23-Sept. 22) registered an increase of 43.7% compared with the similar month of the previous Iranian year. The year-on-year inflation of the month ending Aug. 22 was 43.2%.

The overall CPI (using the Iranian year to March 2017 as the base year) stood at 351.1 for the month to Sept. 22, indicating a 3.9% rise compared with the month before. Month-on-month consumer inflation was 3.2% for the preceding month.

SCI put average inflation for urban and rural areas at 45.1% and 49.7%, respectively.

CPI registered a year-on-year increase of 42.9% for urban areas and 47.8% for rural areas in the month ending Sept. 22.

The overall CPI reached 347.5 for urban households and 370.9 for rural households, indicating a month-on-month increase of 4% and 3.6%, respectively.

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 July 22 was recorded for “food and beverages” with 5.1% and “communications” with 1.3%.

The highest year-on-year inflation in the month under review was posted for “hotels and restaurants” with 65.6% while the lowest YOY inflation was registered for “communications” with 5.5%.

The highest and lowest annualized inflation was registered for “furniture, home appliances and their maintenance” group with 60.9% and “communications” with 16.8%.