Inflation control, result of 11th govt. financial discipline

Tehran, Nov 12, IRNA – One of the major economic developments in the government of prudence and hope in the past year has been harnessing inflation in urban and rural areas. The inflation rate in urban areas in the calendar month of Mehr (September/October) last year stood at 36.2% which dropped to 19.1% this year while the inflation rate in rural areas dropped form 42.5% last year to 18.9% this year. The inflation rate for the main foodstuffs, beverages and tobacco in urban areas which was 53.7% last year decreased to 18.2% this year while non-edible items and services in urban areas which stood at 29.6% last year dropped to 19.6% this year. Reduction of inflation rate in the past year is indicative of government’s discipline over the country’s economy to such an extent that its outcome is now visible in economic indices. No doubt, policies adopted during the past year have placed hope in the society and removed economic concerns such as ever-increasing inflation rate, closure of economic units and soaring unemployment rate which all were manifested in the minus 5.8% economic growth rate. Economist Saeed Leylaz believes that drop in rising prices in all fields has increased the purchasing power for farmers, laborers, government employees and vulnerable masses between 20 to 25 percent. Undoubtedly, during the past year Iran has gained satisfactory achievements in international arena which could be seen in the arrival of greater number of foreign tourists to the country. He said it could be expected that results of the sanctions lifted so far will become visible next month and prices will further drop gradually. Meanwhile, Minister of Finance and Economic Affairs Ali Tayyeb-Nia says the government is making efforts to build a better Iran for all citizens so that it sets an example for all countries. He says the government of prudence and hope is after securing stability and tranquility in the country which will result in the welfare of the people./end