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World Bank figures point to major drop in food inflation in Iran

New World Bank figures show food inflation nearly halved in Iran in June 2023.

Figures by the World Bank shows that food inflation in Iran dropped significantly in June compared to previous months this year.

The figures cited in a Tuesday report by local news agency Tasnim showed that Iran’s food inflation had reached 42.7% in June, down from 77.5% in May and 80.3% in April.

The figures showed that the rate had more than halved from a record high of 90.2% reported in July 2022 which had come after the Iranian government decided to eliminate heavy subsidies given to imports of basic goods.

The fall in food inflation in Iran comes as the country had been among the top 10 in the world with highest consumer prices for food in the months to May.

Iran has been experiencing high but controlled levels of inflation in recent years mainly because of the economic impacts of US sanctions on its oil exports.

Experts say high inflation in Iran is also a result of changes that have taken place in the global commodity supply chains as a result of the coronavirus pandemic and the ongoing war in Ukraine.

Figures published by Iranian government’s statistics agency last month showed that headline inflation in the country had reached 47.1% in the year to late July, down 1% from the year before.

However, World Bank figures cited by Tasnim showed that a majority of high-income countries of the world had reported high food inflation rates in June this year.

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