Iranian First Vice-President Eshaq Jahangiri said the government has managed to control the growth of inflation in Iran during its short period of life since taking control of the country’s affairs and is also making its best efforts to harness economic slowdown.

"The economic policies of the 11th government have resulted in improvement of national economy, reducing inflation and stabilization of Forex rates," Jahangiri said in a meeting with a group of economists.

In the meeting which focused on elimination of economic recession and guaranteeing economic vibrancy, he also said there are still concerns about recession and due to same reason, the main focus of the activities of the government this year will be harnessing the economic slowdown.

Earlier this month, the Central Bank of Iran (CBI) announced that the country's inflation rate has decreased by 9.8 percent since the administration of President Hassan Rouhani took office in August 2013.

The CBI said that the inflation rate reached 30.3 percent in May 2014, showing a sharp decrease compared with the 40.1-percent figure in September 2013.

The CBI noted that the fall in inflation rate started in November 2013, two months after Rouhani warned that the Iranian economy was in the state of stagflation, a situation where the inflation rate is high and the economic growth rate slows down.

The Rouhani administration has envisaged a 25-percent inflation rate for the current Persian calendar year (ending March 20, 2015).

Analysts believe that a rise in production of goods and services has attracted liquidity to these sectors and led to the new fall in inflation rate.
 

News ID 186793