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Iran inflation rises as fuel price and rents surge

Shoppers at a market in Iran. Vegetables and legumes recorded inflation of 12.5 percent Unsplash/Amir Babei
Shoppers at a market in Iran. Vegetables and legumes recorded inflation of 12.5 percent

Inflation in Iran rose month on month in January, driven by a surge in housing rents and fuel prices, official data showed.

Annual inflation reached 32 percent this month, a rise of 2.9 percent month on month, local media outlets said, citing data released by the Statistical Center of Iran.

The annual inflation rate was based on the 12 months until January 20.

Annual housing, utilities and fuel prices rose 38 percent, while education costs increased to 34 percent. 

Vegetables and legumes reported the highest monthly increase at 12.5 percent. However, meat prices fell 1.4 percent month on month.

Iran has faced “high but controlled levels of inflation since 2020” following the imposition of tough US sanctions on oil exports, according to state-run Press TV.

The annual inflation rate hit 49.1 percent in May 2023, almost reaching a 30-year high, the news outlet said.

Last week, the World Economic Forum said that economic concerns such as inflation dominate risk perception for the coming year in the Gulf and across the Middle East and North Africa.

Inflation was ranked the No 1 risk by business leaders and experts in the UAE, Qatar, Egypt, Turkey and Iran.