News & Reports News Year 2011 May , 2011 Iran inflation rate rises to 14%

Iran inflation rate rises to 14%

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Iran's inflation rate has climbed to about 14 percent in the Persian calendar month ending April 20, the Central Bank of Iran Governor Mahmoud Bahmani says.

He said inflation for the month of Farvardin rose to about 14 percent, from 12.4 percent one month earlier, IRNA reported.

Bahmani further dismissed forecasts about an inflation boom during the current Iranian month of Ordibehesht, which began on April 21.

Some economists say prices could soar as a result of the government removing subsidies on essentials such as food and fuel.

The first phase of the plan began in December and eliminates USD 20 billion of subsidies on food, gasoline, electricity and natural gas.

Gasoline prices and utility bills have soared since the start of the subsidy reform plan.

Also on Saturday, Iranian lawmakers amended part of the budget bill for the current Iranian calendar year which does not allow the government to raise prices by more than 20 percent.

The amendment means the government's revenue from removing subsidies on food and energy will reduce from IRR 620 trillion (USD 59 billion) to IRR 30 trillion (USD 28 billion), IRNA reported.

Lawmakers argued that the amendment would prevent a hike in prices as a result of the government's subsidy reform plan.