On Inflation

Tabnak, one of Iran’s most popular news sites, observes that the Central Bank of Iran (CBI) has lost the battle and the will to fight inflation, and its governor has quit speaking about the fight against inflation and instead keeps offering forecasts on the rate of inflation growth in the coming months. To read the article in Farsi, please click here. An excerpt on the deteriorating situation in the past two years:

"According to the Central Bank’s own statistics: the inflation rate two years ago was at 12.4 percent, the rial exchange rate to dollar was at 9,660 and the price of the official Bahar gold coin was at 4,350,000 rials. Today, the inflation rate is at 21.8 percent (nearly doubled in the two years), the rial exchange rate is at 17,300 rials (the national currency loosing its value by nearly 80 percent in just two years) and the official gold coin price is at 6,640,000 rials (more than 50 percent price increase in tow years)."

Source: Tabnak.ir, 29 May 2012