Iranian inflation at single-digit after 25 years

COMPILED FROM WIRE SERVICES
ISTANBUL
Published 24.06.2016 00:22

From a 40 percent level only three years ago, the inflation rate in Iran dropped to 9.5 percent following the lifting of sanctions. Iranian Vice President Muhammed Bagher Nobakht said the inflation rate had dropped to single digits for the first time in 25 years. Along with the decline in the inflation rate, banks decreased their annual deposit interests from 18 percent to 15 percent. According to Central Bank of Iran's Governor Valiollah Seif, it is acceptable for interest to be one or two percent higher than the rate of inflation.

Since losing most of its oil revenue under sanctions, Iran's oil production has revived to the same level as 35 years ago following the lifting of the embargo.

Iran expects economic growth of more than 5 percent in 2016, after emerging from years of isolation and crippling international sanctions over the country's nuclear program. 
The major oil producer's economy is still struggling and growth is close to zero, but many investors are betting that restoring Iran's links with the world and attracting foreign capital and technology will trigger a long-term economic boom.

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