TEHRAN (Iran News) – Minister of Finance and Economic Affairs Ehsan Khandouzi vows the inflation to be curbed in the upcoming months and reiterated that all bodies are focused on controlling the inflation.
Khandouzi said that the Central Bank should plan and vow the people according its plans but he as the spokesman of the economic headquarters of the government reiterates that curbing inflation is the main priority of the government and plans and focus of all state organs are focused on curbing all three factors of inflation and promised control of the inflation in upcoming months.
Despite the Central Bank’s claims on the improvement of the economic condition because of slow down of the liquidity growth, the inflation in last Iranian month rose 12.2% which is a dangerous sign about the economic condition, and continuation of this inflation trend in the upcoming months may shoot up the inflation rate to 70% by the yearend.
Khandouzi said that three factors play key roles in inflation that one is liquidity growth which is gradually being controlled and the other factor is monetary and banking irregularities in economy that the government will curb it.
He went on to say that the other factor behind the inflation is rise in the production costs and this cost soared in the early months of the year due to different issues like overseas factor, imported inflation, rise in the price of the animal feeds, rise in salaries and implementation of the subsidy project and for this reason the country saw such a rise in inflation last month.
Khandouzi reiterated that due to some measures taken by the government, the inflation will decline in the upcoming two months and therefore inflation outlook will move towards curbing definitely in the upcoming months.
He also urged the Central Bank to give promises in accordance with its actions and plans but he promises the inflation will be curbed soon.
Khandouzi reiterated some academic issues and economic theories do not usually work in the country and they do not fit the national economy’s condition and one cannot rely on the theories and should study the reasons behind their success or failure in the country.
He admitted that in Iran’s economy there is a gap between the experiences and policy-making policies and sometimes academic issues and economic theories do not match with the policymaking policy and the gap between the independent policymaking and educational system should be amended and holding apprenticeship courses is a must which is implemented in most countries in the world.
He concluded that some economic topics which are taught in the educational systems and classes are not usually suitable for our national economy and therefore the country cannot rely on them.
