The Central Bank of Iran has a comprehensive plan to combat inflation and boost production with the help of other executive bodies, the bank's governor said.
"Inflation is highly expected to be lowered considerably this year with the help of the plans…Targets for boosting production are also achievable," CBI website quoted Mohammad Reza Farzin as saying.
Controlling money supply, reducing government spending and improving financial discipline are key parameters that can and should tame inflation, he noted.
"Stabilization policies are expected to help address the chronic economy problems, especially forex rates and inflation," he added.
The Leader of the Islamic Revolution Ayatollah Seyyed Ali Khamenei, in his New Year message this month, announced “inflation control and production growth” as the motto of the year.
He noted, however, that this does not mean disregard for the social, cultural and other sectors. “A disorderly economy will also impact culture,” he said.
He concurred that the economy is the most important issue of the country as it is linked to people’s livelihoods.
“High inflation rates for consecutive years … will harm the balance of income distribution in the country,” he said.
Consequently, some groups remain deprived while others accumulate wealth, both of which causes corruption, he was quoted as saying.
“It is important to control inflation in a way that it doesn’t result in recession and helps production,” he said, stressing that this is “doable”.
Iran saw average annual inflation rate of 46.5% in the last fiscal year that ended on March 20, the CBI said.
Consumer Price Index stood at 794.3 in the 12th month of the year, 6.6% higher on the previous month. The bank did not report the year-on-year inflation in the 12th month.
The bank surveys CPI for 12 groups of goods and services. Notably, the food and beverage group’s inflation reached a massive 54.6%.
The inflation rates for transportation, health and medical care, clothing and footwear, home appliances and services, communications, entertainment and cultural affairs, education, restaurant and hotel, tobacco, housing and utilities (water, electricity, gas and other fuel) and miscellaneous goods and services” reached 32.3%, 41.9%, 45.9%, 33.3%, 19.3%, 37.8%, 35.1%, 80%, 28.8%, 48.3% and 38.3% respectively.
