Iran’s economy minister admits failure to control inflation

07 April 2008
Iran’s economy minister has admitted that the government has failed to control inflation, after official figures showed that prices climbed by 18.4 per cent in the last Iranian year, up from 13.5 per cent the previous year.

“The government failed to control inflation in the last Iranian year,” said economy minister Danesh Jaafari.

Iranian president Mahmoud Ahmadinejad has spent billions of dollars on infrastructure projects and handouts to poor families, which form a key part of his political constituency.

“Despite a central bank report that the government performance in most economic areas has been positive, its plan to decrease inflation has not materialised,” Jaafari said, according to the official IRNA news agency.

Jaafari added that the government’s efforts to promote the private sector, including its privatisation campaign, have been marred by “weak performance”.

A MEED Subscription...

Subscribe or upgrade your current package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.

Get Notifications