Iranian Majlis Speaker Ali Larijani has warned that the parliament will shelve any plan of the government which will push up inflation.

The government of President Mahmoud Ahmadinejad, which has come under fire for its lack of success in curbing prices, plans to implement a major economic development plan aimed at tackling the country's main economic problems, including rising inflation.

The scheme includes measures such as redirecting government subsidies and taxes, redefining the national currency system and exercising more control over the market forces of supply and demand.

The plan also incorporates fundamental changes in the banking, customs, and tax systems.

Noting that the economic development plan includes some positive points, Larijani added, "We are concerned about the inflationary impact of the plan."

Parliament has set up a special commission to review the president's economic plan.

The parliamentary commission cautioned the chief executive against making 'hasty decisions' regarding the scheme, saying further negotiations were needed between the commission and the presidential working group.

Parliament's cautionary note comes as the Central Bank of Iran in its latest report said that the country's annual inflation has continued to move upward and now stands at 29.4 percent. That figure represents a 3.9 percent increase compared to last month's official numbers.

Strong domestic demand, surging food prices, and high housing costs are generally cited as the primary reasons for growing national inflation.

DB/HAR