Iran's inflation rate reaches 14.2%

The Central Bank of Iran (CBI) says the country's inflation rate has increased 0.2 percent to reach 14.2 percent in the Persian calendar month ending May 22, Press TV reported.

"The inflation rate in the twelve-month period ending Ordibehesht month (April 20-May 22) reached 14.2 percent," the CBI announced on Thursday, IRIB reported.

It added that commodity price index jumped by 1.7 percent in Ordibehesht compared with the past month.

Some economists say prices could soar as a result of the government removing subsidies on essentials such as food and fuel.

The first phase of the plan began in December and eliminated USD 20 billion of subsidies on food, gasoline, electricity and natural gas.

Gasoline prices and bills have soared since the start of the subsidy reform plan.

The targeted subsidy plan is in line with recommendations from global financial organizations, which advise Iran rid itself of a heavily subsidized economy in order to remedy the country's economic problems.


/Trend/