According to a statement by the bank, inflation hit 19.1 per cent in the month to the end of 22 November exceeding the bank’s forecast of 17 per cent.

Inflation was 16.8 per cent in the month to the end of 22 October.

Opposition MPs in the majlis, Iran’s parliament, say central bank governor Tahmasb Mazaheri was still underestimating inflation, which they forecast will be 22.4 per cent during the current Iranian year.

President Mahmoud Ahmadinejad has been diverting Iran’s oil wealth into infrastructure projects, targeted at his key supporters.

As a consequence of the rise in spending on infrastructure, money supply growth in Iran is currently around 40 per cent.