Monday, September 08, 2008

All is not bright in Iran: No end in sight as Iranian inflation hits 27.6 percent

Agence France Presse (AFP)

Monday, September 08, 2008

TEHRAN: Iran's inflation hit 27.6 percent in the calendar month of Mordad, which ended August 21, the central bank said Sunday, as Iranians were again battered by rising prices of basic items like foodstuffs. The consumer price index (CPI) in urban areas increased by 27.6 percent compared to the same month in the previous year, the Etemad newspaper quoted the bank as saying. The figures confirm that consumer prices remain on an upward trajectory in the nation of 70 million people, with the poor hit the hardest.

Inflation in urban areas during the Iranian month of Tir, which ended July 21, touched 26.1 percent, while the two months prior to that registered CPI increases of 25 and 24 percent respectively.

The central bank report only provided the figure for urban areas, where more than two-thirds of the Iranian population lives.

President Mahmoud Ahmadinejad has been blamed by many economists for directly fueling the price rises by infusing huge amounts of cash into the economy to fund local infrastructure projects.

The inflation affects staples such as meat, beans and rice whose prices were shown to have doubled in a yearly comparison. Unsubsidized milk and bread have also joined the inflation-hit items.

A four-member, lower-income family with a net take-home income of 2,100,000 rials ($215) has to spend up to 80 percent of its income on food each month, Etemad reported.

Based on the central bank figures, the daily concluded that food spending for such a family has more than doubled in one year.

Ahmadinejad was elected in 2005 on a platform promise of helping the poor, making economic "justice" one of the chief domestic slogans of his government. - AFP

Comment: Hopefully this gives our leaders some ideas regarding sanctions-I have several-there is more than one way to ...

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