Inflation Gap Between Income Deciles Widens
EghtesadOnline: The average annual inflation gap measured by the Statistical Center of Iran among income deciles stood at 3.4% in the ninth Iranian month (Nov. 22-Dec. 21), indicating a 0.2 percentage point increase compared with the previous month’s 3.2%.
The inflation gap in “food, beverages and tobacco” group among income deciles decreased by 0.6 percentage points and that of “non-food and services” group reduced by 1.8 percentage points compared with the previous month.
The average goods and services Consumer Price Index in the 12-month period ending Dec. 21 increased by 46.1% for the first decile (those with the lowest income) while it grew by 43% for the 10th decile (those with the highest income).
The annual inflation of “food, beverages and tobacco” surged by 58.1% for the first decile and 57.3% for the 10th decile. “Non-food and services” inflation grew by 33.9% for the first decile and 39.7% for the 10th decile.
Average annual inflation rates swelled by 46.2% for the second decile compared with last year’s corresponding period; 45.3% for the third decile; 44.8% for the fourth; 44.3% for the fifth decile; 43.7% for the sixth decile; 43.5% for the seventh decile; 42.9% for the eighth and 42.7 for the ninth decile.
The highest overall CPI (using the Iranian year to March 2017 as the base year) stood at 407.7 for the 10th decile and the lowest calculated was 378.1 for the sixth decile.
The first decile registered a 1.6% month-on-month inflation; the second, third, fourth, fifth and sixth deciles saw a monthly inflation of 1.5%; the seventh 1.6%, the eighth 1.7%; the ninth 1.9% and the 10th decile posted a 2.3% month-on-month inflation rate.
The year-on-year inflation rates increased by 36.3% for the first decile during the month under review; 36.2% for the second; 35.6% for third; 35.4% for fourth; 35.1% for fifth; 34.8% for sixth; 34.7% for seventh; 34.5% for eighth; 34.4% for ninth and 35.1% for 10th decile.
Income deciles are groupings that result from ranking either all households or all persons in the population in the ascending order according to income and then dividing the population into 10 groups, each comprising approximately 10% of the estimated population.
The latest CPI data released by the Statistical Center of Iran show the downtrend in annualized inflation registered in the eighth fiscal month (ending Nov. 21) maintained momentum in the ninth month.
Irrespective of income deciles, the average goods and services Consumer Price Index in the 12-month period ending Dec. 21 increased by 43.4% compared with the corresponding period of the year before.
SCI had put the average annual inflation rate for the preceding Iranian month, which ended on Nov. 21, at 44.4%.
The consumer inflation for the month under review (Nov. 22-Dec. 21) registered an increase of 35.2% compared with the similar month of the previous Iranian year. The year-on-year inflation of the month ending Nov. 21 was 35.7%.
The overall CPI (using the Iranian year to March 2017 as the base year) stood at 379.2 for the month ending Dec. 21, indicating a 1.7% rise compared with the month before. Month-on-month consumer inflation was 2.5% for the preceding month.
SCI put average inflation for urban and rural areas at 42.7% and 47%, respectively.
CPI registered a year-on-year increase of 35% for urban areas and 36.2% for rural areas in the month.
The overall CPI reached 374.9 for urban households and 403.7 for rural households, indicating a month-on-month increase of 1.6% and 1.8%, respectively.
The highest and lowest monthly growth in the index among 12 groups of the basket of consumer goods and services purchased by households in the Iranian month ending Dec. 21 was recorded for “tobacco” with 3.9%, and “communications” and “housing and utilities (water, electricity, natural gas and other fuels)”, each with 1%.
The highest year-on-year inflation in the month under review was posted for “hotels and restaurants” with 60.1% while the lowest YOY inflation was registered for “communications” with 2.3%.
The highest and lowest annualized inflation rates were registered for “food and beverages” with 58.3% and “communications” with 10.7%. With a coefficient of 26.64%, the CPI of “food and beverages” for all Iranian households stood at 497.7 in the month ending Nov. 21, indicating a 3.1% increase compared with the previous month. The index registered a year-on-year increase of 47%.
With a coefficient of 26.64%, the CPI of “food and beverages” for all Iranian households stood at 503.5 in the month ending Dec. 21, indicating a 1.4% increase compared with the previous month. The index registered a year-on-year increase of 41.8%.
The CPI of the group increased by 58.3% in the 12-month period ending Dec. 21 compared with last year’s corresponding period.