Iran inflation decreases ahead of presidental polls

Iran's annual inflation rate fell to 15 percent in May, the central bank said, continuing a downward trend days before an election.

Iran inflation decreases ahead of presidental polls

Iran's annual inflation rate fell to 15 percent in May, the central bank said, continuing a downward trend days before an election where reformists are challenging President Mahmoud Ahmadinejad's economic record.

Ahmadinejad's rivals in the June 12 presidential vote have accused his government of stoking inflation with profligate spending of petrodollars since he came to power in 2005 pledging to share out Iran's oil wealth more fairly.

The conservative president has blamed high inflation on international energy and food price rises that peaked during 2008 and points to a falling trend since late last year.

The issue of rising consumer prices during Ahmadinejad's tenure has become a key battleground in the election campaign and hotly discussed during televised election debates, with candidates citing different figures to make their point.

A drop of more than 50 percent in global oil prices since July 2008 has hit Iran's main source of revenue.

Ahmadinejad last month said Iran's economy continued to show growth of 5-6 percent, despite the oil price fall, and that it was doing much better than those of its Western foes.

The central bank said consumer prices rose 1.2 percent in the Iranian month of Ordibehesht, which ended on May 21, compared with the previous month.

The year-on-year rate was 15 percent, the bank said. It did not give a comparison but said it had continued to decline. In March, the year-on-year figure stood at 17.8 percent.

Reuters
Güncelleme Tarihi: 08 Haziran 2009, 15:16
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