TEHRAN (Iran News) –Governor of Iran’s Central Bank in a TV program said that the inflation rate for next year is predicted to go downward adding that since the beginning of President Seyed Ebrahim Raisi’s government, the inflation rate has declined from 59.3% to 39.9% and reiterated that the current excited forex rate will cool down.
Ali Salehabadi said that there are several factors in inflation and one of them is the supply and cost that for example global prices cause it. He added that when the global prices rise, it causes rise in inflation and it can increase the costs. He noted that the other factor is demand which is mostly because of liquidity and the other factor is expectations.
He then elaborated the programs of the central bank for curbing the growth of the liquidity. He reiterated that the liquidity growth will decline to below 30% by the yearend as the monetary base in last Iranian calendar month was 20.5% and the economic growth was 20.2%, and it is expected the liquidity growth will be less than 30% before the yearend.
Salehabadi then touched upon the details of the increase in capitals of the banks and said that this increase is because of selling shares. He also said that the producer price index when President Raisi took office was 82.6% and it has now fallen to 39.1% and even point-to-point index was 103% in May that it has decreased to 32.9% and it will increase more by the yearend.
He said that next year three factors will be ineffective on the inflation trend and therefore liquidity, monetary base and inflation will see a downward trend next year.
He also touched upon the rise in the forex price and devaluation of national currency and stressed that the current dollar price in the free market is unreal adding that the country has no problem in earning forex, and the market has not faced with distribution of forex.
Salehabadi stated that one of the reasons in devaluation of the dollar in Iran is the rise in the value of dollar in the world and the other main reason is because of incidents and expectations in the country and market and actually excitement in the market which have increased the price of forex and it is unreal.