Annual producer inflation in Iran falls to lowest level in 7 years

(MENAFN) Iran’s annual producer price inflation (PPI) has fallen to its lowest level in seven years, according to Central Bank of Iran (CBI) Governor Mohammadreza Farzin. During a recent cabinet meeting, Farzin reported that the PPI for the calendar month ending in late November recorded a monthly inflation rate of 2.4 percent. This represents a significant decrease compared to previous months, indicating a slowing in price increases at the producer level.

The annual PPI for November dropped to 27.6 percent, which is a one percent decline from the previous month. This marks the lowest level of annual producer inflation since November 2018, signaling a potential stabilization in production costs. The reduction in PPI is a positive sign for Iran's economy, as lower inflation at the production level could eventually help reduce consumer prices.

Farzin also pointed to a favorable trend in consumer price inflation (CPI), which has reached its lowest level since November 2020. This decrease in CPI is a positive development for consumers, as it suggests that the rate of price increases for goods and services is slowing, helping to ease the financial pressures on households.

Together, these inflation figures indicate a potential shift in Iran’s economic conditions, with both producer and consumer price inflation showing signs of slowing down. These developments may provide some relief to the Iranian economy, which has faced significant challenges in recent years, including the effects of sanctions and domestic economic pressures.

MENAFN09122024000045015839ID1108970193