Reducing inflation has been a primary goal of the government of President Hassan Rouhani whose efforts are paying off. This is the first time in 26 years that average inflation has fallen to a single digit, according to sources in the CBI. The last time was in 1990, when Iran was emerging from the carnage of the Iraq-imposed war. The goods and services Consumer Price Index for urban areas reached 9,7% in the 12-month period ending June 20th, which marks the third month of the Iranian year, compared with last year’s corresponding period, according to the Central Bank of Iran. CBI put the preceding month’s inflation rate at 10.4%. The overall consumer price index (using 2011 as the base year) stood at 240.9 in Khordad, indicating a1.2% increase compared with the previous month and a year-on-year increase of 6.8 % compared with last year’s similar month.
The government’s efforts to get its finances in order and the CBI’s monetary policy have been instrumental in curbing inflationary pressures. But some economists say near zero global inflation, coupled with recession in the Iranian economy that has hammered consumer spending, are the main reasons for the drop in CPI.