Iran’s inflation rate estimated to 9.7%

Central Bank of Iran (CBI) reported on Saturday that the annual inflation rate of Iran stood at 9.7 percent in 2016 to June 20, compared to its preceding 12-month period.

According to the country, last week, Statistical Center of Iran put the inflation rate for urban areas at 9.5 percent in the period, adding that point-to-point inflation revealed 6.1 percent.
Consumer Price Index (CPI) for urban areas was 240.9 in a month to 20th June, which shows a 1.2 percent growth compared to the figure for the last month, added the CBI report.
The figure also illustrates 6.8 percent increase compared to corresponding figure of previous year.
Iranian inflation eased into single digits for the first time in a quarter century, said President Hassan Rouhani.

“It’s usually normal for interest rates to be 1-2 percent higher than the inflation rate, and serious commitments are in place to have interest rates be in line with this,” ISNA cited Seif, CBI Governoras, saying on June 15.
“The CBI believes that any method must be claimed to change interest rates to an acceptable level.”
Since world powers and Iran agreed an accord which left most trade and finance restrictions in return for nuclear deal, crude exports have risen  to pre-sanctions levels and global companies have signed deals.

Lower inflation and interest rates will add to that momentum by encouraging capital investment by companies that have struggled to secure reasonable financing, according to Mona Haji Ali-Asghar, chief operating officer at Kardan Investment Bank. Money will also probably flow from saving accounts into property and equity markets, she said.

“But I think we need a few months to see the full impact on the economy, and it’s also important than some structural developments in the economy happen alongside this,” she said.

Source : Iran Daily