Mahmoud Bahmani

Iran’s inflation rate will rise to 31 percent by the end of March, according to the head of Iran’s Central Bank.

The Fars News Agency reports that Mahmoud Bahmani said during a conference on monetary policy and the challenges facing manufacturing and banking in Iran that the current rate of inflation now exceeds 28.7 percent and will surpass 31 percent by the end of the Iranian year, March 21.

He added that this is one half percent lower than had been previously predicted and even lower than the 40 percent predicted prior to that.

The head of Iran’s Central Bank said: “We are under an economic war and need to think of arrangements that can overcome these hurdles… like any other war, economic wars also have casualties.”

The rial has fallen in value against the dollar by 45 percent in the past year. Bahmani cited the international sanctions, low interest rates, the fluctuations in the currency market and a decline in production as possible causes of inflation.