September 21, 2018
The rate of inflation has leaped above 20 percent and is now the highest rate in 5-1/2 years. The Central Bank of Iran reported that the rate of inflation in the month of Mordad, ending August 22, was 24.2 percent, when compared to the rate in the same month last year. That was the highest rate since January 2013, several months before President Rohani was elected. It was also an immense jump from the previous month, when the rate was reported at 18 percent. The bank also calculates inflation as an average over the previous 12 months. By that calculation, the rate of inflation is now 11.5 percent, up slightly from 10.2 percent the previous month. As can be seen in the chart above, the 12-month average normally trails the year-on-year rate, but eventually catches up with it. So the comparison with the same month in the previous year is the more important measure. The CIA publishes a tabulation of inflation rates in 227 economies. It shows only eight states with rates higher than Iran now—Syria, Angola, Libya, Argentina, Sudan, Congo Democratic Republic, South Sudan and Venezuela. The International Monetary Fund has predicted Venezuela will see inflation of 1 million percent this year.
