Drop In Production Sector Inflation Promises Better Economic Situation

Tehran, Sept 16, IRNA – Statistics released by the Central Bank of Iran (CBI) indicating a 2.4% drop in inflation rate in the production sector promises that fall in prices in different sectors will start and better economic situation will be experienced soon. Official statistics show that as inflation rate in consumer goods is on decline, inflation rate in production sector is taking a downward trend as well. According to CBI statistics, inflation rate in the production sector in the calendar month of Tir (June-July) reached 24.9% which shows a drop of 2.4% compared to last year. Given that a drop in inflation rate in production sector is indicative of reduction of higher costs of production, and drop in inflation rate in consumption sector has provided better conditions for customers, reduction of inflation in production costs is considered a positive development for producers. Economic recession which affected production units in the calendar years 1391-92 (2012-2013) together with high inflation rate in the production sector, forced many producers to lower their production capacity and others to close down business./end