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Inflation down but cheap oil may halt decline in inflation

by Zamaneh Media
January 25, 2015
in Latest Articles
Reading Time: 1 min read
0
Inflation down but cheap oil may halt decline in inflation

Iran’s Central bank reported that inflation rate in the country fell to 16.3 percent in the first month of winter, which represents a decline of 22 percentage points compared to last winter.

The report says the price index for consumer good and services in the past month is at 212.3, which means the price of goods and services has doubled in the past three years.

While inflation in Iran has been steadily declining over the past year, analysts say the plunge in the price of oil may halt inflation’s downward progression.

The Rohani administration has announced that in the past six months, the country’s economy has moved out of recession and is beginning to grow after two years of shrinking.

However, the drop in oil prices has caused a big vacuum in the government’s budget, and there is much concern about the impact of declining oil revenues on the country’s economy.

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