Iran’s inflation rate to fall below 15% next year: minister

TEHRAN – The Iranian finance and economic affairs minister says the country’s inflation will fall below 15 percent in the next Iranian calendar year, starting on March 21.

If we succeed in continuing the current trend [of economic progress], the inflation rate will certainly reach below 15 per cent, he added.
Unfortunately, during the recent years the country has become more and more dependent on foreigners. These factors put the national economy in a serious danger, Tayyebnia said.
The international sanctions reduced the country’s oil and petrochemical revenues. So, it caused an imbalance in the government’s budget, he noted.
On March 1, the Statistical Center of Iran announced that the inflation rate for the 12-month period ended the eleventh Iranian calendar month of Bahman (ended on February 19) hit 33.7 percent, a 1.3 percent decline compared to the previous month.
Meanwhile, the point-to-point inflation rate hit 22 percent.
In a decree issued on February 19, Supreme Leader of the Islamic Revolution Ayatollah Seyyed Ali Khamenei outlined the general policies of the country’s “resistance economy,” under which, the government must take action to expand the production and exportation of knowledge-based products, increase domestic production of strategic goods, and develop markets in neighboring countries.
It also encourages greater privatization and increased exports of electricity, gas, petrochemicals, and oil byproducts instead of crude oil and other raw materials.
In a meeting with Iranian laborers in April 2013, the Supreme Leader described the constant change of economic policies, reliance on inexpert opinions, and trust in the imposed economic theories of the West and the East as harmful.
In November 2013, Iranian President Hassan Rouhani said his government plans to decrease the inflation rate to below 25 percent by the end of the next Iranian calendar year 1393 (March 20, 2015).
The inflation rate is projected to be 35 percent at the end of the current Iranian calendar year (March 20, 2014).
“First, the administration plans to curb the inflation rate and reform the banking system, and then change the method of (cash) subsidy payments,” he added.
In October 2013, Tayyebnia said the government plans to reduce the inflation rate by 6 to 7 percent by the end of the current calendar year (March 20, 2014).

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