“The Real Inflation Rate in Iran is much more than the Reported Rate”

The Real Inflation Rate in Iran is much more than the Reported Rate

Mehdi Taghavi, economics professor at the Tehran’s Tabatabai University, said the actual inflation rate in Iran is much more than the reported rate by Central Bank of Iran. CBI is a governmental organization and its statistics about inflation rate are criticized by the local economists and experts.

“During the recent months, the Rial Dollar exchange rate has been increased dramatically and the value of Iranian Rial has been dropped significantly. This factor causes a major inflation rate in country.” Professor Mehdi Taghavi said. Currently the exchange rate of Dollar in Tehran’s free market is more than 35,000 Rials while Central Bank of Iran set the official price on 12,500 Rials. All the reports of CBI are based on the official currency rate which has a notable gap with the real price of foreign currencies in the country.

“Central Bank of Iran has limited its reports to only 259 items. But the real number of livelihood items is more than the reported one. Unofficial organizations and institutions have calculated the inflation rate more than 50%. The economic growth in the Middle East region has been increased by 5% but unfortunately we didn’t record any growth rate in Iran.” Mehdi Taghavi reiterated.

Most part of the current problems in Iran’s economy is because of the sanctions against Iran set by the United States and European countries. Westerns believe Iran is developing nuclear weapons and urge this country to stop its nuclear program, but Iran deny all the claims and continue its nuclear programs.

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