SCI: Inflation Gap Among Income Deciles Reaches 2.8%

EghtesadOnline: The average annual inflation gap measured by the Statistical Center of Iran among income deciles stood at 2.8% in the seventh Iranian month (Sept. 23-Oct. 22), indicating a 1.1 percentage point decrease compared with the previous month (3.9%).

News ID: ۷۸۷۲۳۸

31 October 2021

The inflation gap in “food, beverages and tobacco” group among income deciles decreased by 0.9 percentage points and that of “non-food and services” group reduced by 3.6 percentage point compared with the month before.

The average goods and services Consumer Price Index in the 12-month period ending Oct. 22 increased by 47.9% for the first decile (those with the lowest income) while it grew 46.9% for the 10th decile (those with the highest income).

“Food, beverages and tobacco” group annual inflation increased by 62.2% for the first decile and 59.4% for the 10th decile. “Non-food and services” group inflation grew 33.9% for the first decile and 44% for the 10th decile.

Average annual inflation rates grew by 48% for the second decile compared with last year’s corresponding period; 47.2% for the third decile; 46.6% for the fourth; 46.1% for fifth decile; 45.6% for the sixth and seventh deciles; 45.2% for the eighth decile and 45.6% for the ninth decile.

The highest overall CPI (using the Iranian year to March 2017 as the base year) stood at 387.7 for the 10th decile and the lowest calculated was 363.8 for the sixth decile.

The first decile registered a 4.3% month-on-month inflation; the second decile saw monthly inflation of 4.1%; the third 4%; the fourth 3.9%; the fifth and sixth deciles 3.8%; seventh 3.7%; eighth 3.6%; ninth 3.5% and the 10th decile posted a 3.1% month-on-month inflation rate.

The year-on-year inflation rates increased by 46% for the first decile during the month under review; 45.4% for the second; 44% for third; 43.3% for fourth; 42.3% for fifth; 41.2% for sixth; 39.7% for seventh; 38% for eighth; 35.3% for ninth; and 31.1% for the 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.

Latest CPI data released by the statistical center show the average annual inflation in Iran has broken a 12-month rising streak in the fiscal month to Oct. 22.

Irrespective of income deciles, the average goods and services Consumer Price Index in the 12-month period ending Oct. 22, increased by 45.4% compared with the corresponding period of the year before.

SCI had put the average annual inflation rate for the preceding Iranian month, which ended on Sept. 22, at 45.8%.

The consumer inflation for the month under review registered an increase of 39.2% compared with the similar month of the previous Iranian year. The year-on-year inflation of the month ending Sept. 22 was 43.7%.

The overall CPI (using the Iranian year to March 2017 as the base year) stood at 364.1 for the month to Oct. 22, indicating a 3.7% rise compared with the month before. Month-on-month consumer inflation was 3.9% for the preceding month.

SCI put average inflation for urban and rural areas at 44.7% and 49.6%, respectively.

The CPI registered a year-on-year increase of 38.4% for urban areas and 43.9% for rural areas in the month ending Oct. 22.

The overall CPI reached 360.2 for urban households and 386 for rural households, indicating a month-on-month increase of 3.6% and 4.1%, respectively.

The highest and lowest monthly growth in index among 12 groups of the basket of consumer goods and services purchased by households in the Iranian month ending Oct. 22 was recorded for “education” group with 13.5% and “communications” group with 1.1%.

The highest year-on-year inflation in the month under review was posted for “food and beverages” with 61.3% while the lowest YOY inflation was registered for “communications” with 1.1%.

The highest and lowest annualized inflation was registered for “food and beverages” with 61.4% and “communications” with 14.7%.

With a coefficient of 26.64%, the CPI of “food and beverages” for all Iranian households stood at 481.9 in the month ending Oct. 22, indicating a 5% increase compared with the month before. The “food and beverage” index registered a year-on-year increase of 61.3%. The CPI of the group increased by 61.4% in the 12-month period ending Oct. 22 compared with last year’s corresponding period.