Reasons behind Slowdown in Inflation Scrutinized

The advance in consumer prices slowed noticeably in the five-month period ending Sept. 22, prompting discussions about what led to this change.

Financial Tribune- The single-digit average Consumer Price Index growth posted for 27 months since the third Iranian month of 2016-17 entered the double-digit territory in the fifth month of 2018-19 due to the significant drop in the value of Iran's national currency following the reimposition of sanctions by US President Donald Trump.
The Iranian rial lost about two-thirds of its value against the dollar in the last fiscal year (March 2018-19).
The US walked out last year of the nuclear deal Iran signed with world powers in 2015. The deal known as the Joint Comprehensive Plan of Action saw the removal of years of international sanctions against Iran. In exchange, Tehran agreed to limit the scope of its nuclear program. Washington's unilateral move last year, however, reignited tensions and reinstated a series of economic sanctions against the Islamic Republic by the United States described as "toughest ever". After waiting for nearly a year for Europeans to compensate the economic losses inflicted by the sanctions without any success, Iran restarted its nuclear program recently in a phased manner after it became apparent that JCPOA had failed to provide it with the advantages promised by the Europeans in the absence of the US.

Publish Date: Sep 28, 2019