Iran’s inflation sinks to 9.9 percent

Iran’s inflation rate has finally reached single digits, as pledged by President Ahmadinejad’s Administration.

The Chief Executive of Iran’s Central Bank Mahmoud Bahmani announced that the country’s rate of inflation declined to 9.9 percent. By the end of the second Iranian month of Ordibehesht (May 21).

According to Bahmani, the inflation rate in the 12-month period ending in the first Iranian month of Farvardin experienced a 4-percent decline, standing at 10.4 percent.

Iran’s inflation rate has experienced only two major reductions in the past 30 years, according to the Iran-based Tabnak news agency.

In the past year, the country experience a 15.6-percent decline from 25.4 percent in Farvardin of last year (March 20, 2009), to 10.8 percent at the end of the last Iranian year (March 19, 2010).

The other major rate decline in inflation took place in the Iranian year of 1375 (1997), when it sank 26 percent from a high of 49.4 percent in the previous year (1996) to 23.2 percent.

Bahmani also fiercely rejected rumors published by the foreign media indicating that Iran’s central bank intends to exchange 45 billion euros of its reserves with gold and the dollar currency.