Finance

Home page

Finance

Iran inflation at 25-year low

21 June 2016 15:18 (UTC +04:00)

Baku - APA-Economics. Iranian inflation eased into single digits for the first time in a quarter century, delivering on a commitment made by President Hassan Rouhani’s government that’s been aided by the end of international sanctions, Bloomberg reported.

The annual inflation rate fell to 9.5 percent in the Iranian calendar month that ended June 20, Vice President Mohammad Bagher Nobakht said on Tuesday, according to the official Islamic Republic News Agency. The rate dropped from 10.2 percent in the previous month, he said, citing figures from the national statistical center.

Central bank governor Valiollah Seif said in May that Iran hadn’t had single-digit inflation in 25 years, predicting that the target would be reached in the summer months.

Sanctions imposed on Iran over its nuclear program curtailed oil sales and slashed investment, tipping the Islamic Republic into recession and helped send prices surging. During the rule of Rouhani’s predecessor, Mahmoud Ahmadinejad, inflation peaked at around 40 percent before starting to dip, according to the central bank.

Since world powers and Iran agreed an accord which removed most trade and finance restrictions in return for nuclear curbs, crude exports have risen almost to pre-sanctions levels and global companies have signed deals.

“Inflation was one of the major challenges in the Iranian economy over the last decade and has been a significant priority of the Rouhani administration,” said Parham Gohari, co-founder of Frontier Partners, which advises multinationals on entering Iran. With a presidential election approaching next year, “Rouhani wants to make sure he delivers on this promise.”