The Latest from Iran (9 October): Triple-Digit Inflation?

0615 GMT: Ahmadinejad & Khamenei Watch. Is there a political showdown on the horizon?

Following the collection of signatures from 93 MPs to interrogate the President, Mansour Haghighatpour, the deputy head of the National Security Council, said the encounter is inevitable --- that is, unless the Supreme Leader opposes it.

An EA correspondent uses a card game to note that, with such a development, Mahmoud Ahmadinejad would not be alone in a tense situation: "If Khamanei refuses the questioning of the President, the Old Maid will be in his hand."

0555 GMT: We start the day with a striking claim --- Iran's inflation has been between 50% and 60% in recent months and is now more than 100%.

While we have documented rising prices in all sectors of the Iranian economy, with evidence of "spikes" on foodstuffs and other basic items, we have avoided a general claim, given the difficulty of getting reliable statistics from the Islamic Republic. (The official rate of inflation is 22% to 27%, depending on which State agency is putting out the figures, but analysts have long believed the actual figure is higher.)

However, on this occasion, the assertion comes from a well-placed source. Hossein Raghbar is an economist, university professor, and former advisor to President Ahmadinejad.

Raghbar put his claim in a wide context beyond sanctions, which he said played only a facilitating role". Instead, he blamed Government policies of the last seven years, with an erosion of the country's manufacturing base, a "corrupt" business environment, and "cumbersome" regulation.

from EA WorldView: EA Iran

Posted via email from lissping