High Inflation To Persist

August 2008 | Economic Analysis

Having risen to 26.4% y-o-y in June - the latest figures available from the Central Bank of Iran (CBI) - we expect consumer price inflation (CPI) to come down slightly in the medium term, hitting 22% by the end of the Iranian year (in March 2009). This slight easing of inflationary pressures will primarily be as a result of declining world food and energy prices. Nevertheless, inflation will continue to be a major problem for the Iranian economy as a number of factors will combine to prevent any rapid deflationary correction.

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