In an attempt to predict inflation for the new Persian year, Chairman of the Majlis Economic Committee, Arlsalan Fathipour, said that the Central Bank’s decision to print large value notes will result in higher inflation in the new year. Addressing subsidy reform as defined in the Budget Law for the new year, Fathipour said that the flow of subsidies means an increase in the amount of cash in the market, and that another increase in inflation should be expected, as should an increase in the number of those suffering in the Iranian economy. He emphasized that reducing inflation requires the implementation of professional and targeted measures in the first phase to maintain the current level of inflation and to prevent any increase. Member of the Majlis Economic Committee, Iraj Nadimi, discussed the challenges of restraining inflation this year, adding that Iran expects to face foreign currency problems as well due to the imbalance between supply and demand, which results in an increase in foreign currency rates. According to Nadimi, the Central Bank’s attempt to distribute gold coins and to regulate foreign currency rates has failed, and the value of the national currency has weakened. If the current process continues, inflation will continue to rise this year as well. The government must help citizens, but not with cash, in order to reduce the economic problems. A drop in inflation and a reduction of economic problems requires a limit on the amount of cash in the market.
Inflation exceeds 31% last Persian year, hits new 17-year high and third highest in modern Iranian history
- Published: 107 days ago on Wednesday, 3 April 2013
- By: Iran Daily Brief
- Last Modified: April 3, 2013 @ 2:11 pm
- Filed Under: Economy
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