08 November 2011 – Financial Times (London): Food inflation threatens stability in Iran

Posted on November 8, 2011

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According to the FT of London, the official inflation rate in Iran is currently running at 19.1 percent.  However, the unofficial rate, as experienced by the average citizen, buying an average basket of food, seems to be running closer to 50%.  Sine June of this year (five months ago…) the price of milk has risen 30%; cheese, 40 % and eggs, 50%.  Last December, the Iranian government instituted a package of reforms the ended state subsidies for basic commodities.  These reforms were applauded by the IMF.  Some observers of the Iranian situation expect to see civil unrest if the rise in inflation continues.

 

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