WB figures point to major drop in food inflation in Iran

The figures cited in a Tuesday report by local news agency Tasnim showed that Iran’s food inflation in June had reached 42.7% in June, down from 77.5% in May and 80.3% in April.

The figures showed that the rate had more than halved from a record high of 90.2% reported in July 2022 when the Iranian government decided to eliminate heavy subsidies given to imports of basic goods as part of a policy to control hard currency spending.

The fall in food inflation in Iran in June comes as the country was among the top 10 in the world with the highest consumer prices increases for food in the months to May.

Iran has been experiencing high but controlled levels of inflation in recent years mainly because of the economic impacts of US sanctions on its oil exports.

Experts say high inflation in Iran is also a result of changes that have taken place in the global supply chains because of the coronavirus and the ongoing war in Ukraine.

Figures published by the Iranian government’s statistics agency last month showed that headline inflation in the country had reached 47.1% in the year to late July, down 1% from the year before.

However, World Bank figures cited by Tasnim showed that some 79% of the high-income countries in the world had reported high rates of food inflation in June this year.


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