Inflation for the year to 21 September reached 29.4 per cent, up from 27.6 per cent over the 12 months to 21 August.

Last month, Central Bank of Iran governor Tahmasb Mazaheri was ousted from his post. In his leaving speech, he criticised President Mahmoud Ahmadinejad for stimulating inflation by printing money.

When Ahmadinejad was elected president in June 2005, inflation was about 11 per cent.

In its latest World Economic Outlook published on 7 October, the International Monetary Fund forecast that Iran’s inflation would reach 26 per cent in 2008 and 22 per cent in 2009.

“Iran can tighten monetary policy while enhancing its effectiveness through greater exchange rate flexibility,” said the report.