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PBO: Iran on path to reduce inflation
Davoud Manzour said that the twelve-month producer inflation in August 2021 was at 89.6% and had decreased to 32.6% by the end of last year (March 19, 2024), adding that “The country is now on a path to reduce inflation and can bring the inflation rate to around 20%, which is its long-term levels,” IRNA reported.
The 31st annual conference began on Monday, centering on the theme of “Reforming Monetary and Supervisory Policies, with a focus on the new Central Bank law.”
The conference featured two key themes: “Monetary, Exchange, and Credit Policy” and “Regulation and Supervision.”
Addressing the conference, the vice president also mentioned that the country’s economic growth was 5.7% last year and predicted that liquidity growth at the end of the Seventh Development Plan (2023-2027) would decrease to less than 14%, which would help single-digit inflation. It was mentioned: the important target in the Seventh Development Plan is to achieve single-digit inflation, which we hope will be realized in the next five years.
The PBO chief added that the government’s economic team, the Ministry of Economy, the Central Bank, and the Plan and Budget Organization have provided a suitable legal regulatory program for the monetary, banking, and exchange sector to have better stability, effectiveness, and efficiency.
Addressing the conference, the Central Bank governor, Mohammad Reza Farzin, also said that inflation expectations have decreased.
According to Farzin, the money growth rate, previously at 33% last year, has now dropped to 16% by the 16th day of the first month of new Iranian year.
As per the Central Bank’s announcement, Farzin mentioned that money growth is an important measure for inflation expectations, and a decrease in its growth rate indicates a reduction in inflation expectations.
The decrease in inflation expectations results from the policies that have been implemented by the government and have reduced the growth of money, the CBI chief said.