Inflation Rate Plummets in Iran Year after US Sanctions

Published August 25th, 2019 - 10:52 GMT
Inflation for staples, medicine and basic goods declined in August, according to the SCI’s Saturday statement, with 56.6 and 35.2 percent for food and non-food items, respectively.
Inflation for staples, medicine and basic goods declined in August, according to the SCI’s Saturday statement, with 56.6 and 35.2 percent for food and non-food items, respectively. (Shutterstock)
Highlights
Point-to-point inflation for the Persian calendar month ending August 22 had declined to 41.6 percent
The Statistical Center of Iran (SCI) announced that inflation rate has declined by 6.4 percent, adding that it is the first such decline after 16 months of turbulence since US President Donald Trump unilaterally withdrew Washington from the nuclear deal between 5+1 and Tehran.

The SCI, the body responsible for issuing reports on major economic indicators, announced that inflation is slowing for a first time since a political dispute with the United States erupted over a year ago and caused a major surge in prices.

SCI chief Javad Hosseinzadeh said on Saturday that point-to-point inflation for the Persian calendar month ending August 22 had declined to 41.6 percent, down from 48 percent in the previous month.

Hosseinzadeh added that for a first time in 16 months, the monthly rate was lower than the official inflation rate of 42.2 percent, which covers the entire year ending in late August.

“Point-to-point inflation has been on a declining mode” he said of the figures recorded for the past three months, adding that the trend means that Iran could further decrease its inflation rate by the end of the current Iranian calendar year in March when major indicators are evaluated.

The announcement comes amid reports suggesting that Iran is emerging from economic losses suffered as a result of US sanctions.

The sanctions began in November 2018, five months after US President Donald Trump withdrew from an international deal on Iran’s nuclear program.

Claiming that the bans were working properly, Trump tightened them in May, only to see that Iran was finding new solutions to recoup the losses.

Since earlier last month, Iran’s national currency rial has regained some of its lost value, currently trading at 116,000 against the US dollar, and significantly up from historic lows of 190,000 in September 2018.

Inflation for staples, medicine and basic goods declined in August, according to the SCI’s Saturday statement, with 56.6 and 35.2 percent for food and non-food items, respectively.

On Thursday, Iranian First Vice-President Eshaq Jahangiri underscored that the measures and plots hatched by Washington to lead Iran's economy into collapse have all failed.

"We have been able to defeat the US plots with the strategy of resistance," Jahangiri said, addressing a ceremony in the Northern city of Noshahr.

"The US threatens the foreign governments and companies (not to cooperate with Iran) but it has not been able to attain its most important goal, that is the collapse of Iran's economy," he added.

In relevant remarks in July, Jahangiri stressed that his country's economy had remained stable one year after the US imposed the toughest embargos against Tehran.

"The US imagines that it can zero down our oil sales by exerting pressure on the countries which purchase Iran's oil to lead Iran's economy towards a collapse, but fortunately, the situation of Iran's economy enjoys an acceptable stability one year after the US oil sanctions," Jahangiri said in a meeting with Head of the International Liaison Department of the Communist Party of China Song Tao in Tehran.

He described China as the main economic partner of Iran and oil customer, and said, "All high-ranking Iranian officials have put the strategy to develop ties with China on their agenda as a serious mechanism."


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