News & Reports News Year 2011 June 2011 Iran inflation rate hits 14.2%

Iran inflation rate hits 14.2%

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Iran’s inflation rate reached 14.2 percent in the twelve-month period ending the second calendar month of Ordibehesht (April 20-May 22), the Central Bank of Iran (CBI) reported.

CBI also added that commodity price index jumped by 1.7 percent in Ordibehesht compared with the past month, Press TV reported.

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 eliminated $20 billion of subsidies on food, gasoline, electricity and natural gas.

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

The targeted subsidy plan is in line with recommendations from global financial organizations, which advise Iran rid itself of a heavily subsidized economy in order to remedy the country's economic problems