Iran faces rising inflation rate - expert

Finance Materials 6 September 2022 19:03
Tehran, Iran Trend News Agency
Iran faces rising inflation rate - expert

Iran is currently facing a growing inflation rate, an Iranian economist Mehdi Pazouki told Trend.

By increasing salaries, the government expenditure grew that consequently leading to high liquidity and rising demands in the domestic market which are the major causes of the high inflation rate, said Pazouki.

According to the Iranian expert, the new administration should control the inflation rate by reinstating discipline in Iran’s economy including discipline in the monetary and banking system and balance in the budget.

The budget for the current Iranian year (started March 21, 2022) has doubled compared to the budget law in 2020, he added.

Figures by the state-run Statistical Center of Iran (SCI) show the annual inflation rate in the country rose slightly in August. The SCI figures released report showed that the consumer price index in Iran rose 41.5 percent.

Reaching an agreement on the revival of the 2015 nuclear deal and Iran’s accession to the Financial Action Task Force (FATF) would absorb foreign investors and Iranians living abroad, Pazouki said adding that investors are willing to invest in a stable economy.

Following the collaboration of the three powers, the Iranian government has started to provide facilities to the Iranian citizen living in abroad to invest in the country, Pazouki noted.

The Iranian President Ebrahim Raisi has addressed the necessary grounds for safe investment guaranteed by capital and profit in Iran in his foreign travels.