Inflation in Iran is at around 40%...so lets break it down to its 8 category that drive the inflation .These 8 categories are inflation drivers as measured to calculate inflation:
- 1- Food prices
- 2- Shelter (housing prices or rent)
- 3-Household operations (heating,Taxes,water costs)
- 4-furnishings and equipment prices
- 5-Transportation costs (Auto prices,fuel prices)
- 6-Health and personal care costs
- 7-Recreation costs
- 8-Education costs
keeping in mind that "energy" is the basis of producing most of these items. Energy (petroleum,Gas,electricity) is dirt cheap in Iran and most of these 8 items are produced in Iran ..the question is why inflation is at 40%!! it makes no sense..yes there are not enough of them for now (Housings or autos) but this can not create such a high 40% inflation.
So again why inflation is at 40% in Iran..my only answer as another PDF member pointed out:
It is the declining value of Iranian currency ...and that decline only happens when you create too much "Rials" out of the thin air!...somebody is printing money in Iran ..if it is not central bank then who!
I think we should separate these two things first how much of this 40% inflation is comes from outside
and second how much of it is homemade
For example did Japan had the power to stop US influence during and after 2008 housing bubble in US which lead to crashing markets.I think there are things that you may do and things that are out of your capabilities.
Back to Iran last year was a wile year in whole world biggest example of it can be seen in 8-9% of inflation in US and since Iran has a lot of unsolved issues with US and western world I think it would be fair to add this 8-9% of US inflation into our inflation and see it as some kind of safety measure.
Then we have price of things we use in our country that are not that much related to what happens with US dollar.(mostly our neighbors stuff)we should put these things into consideration too.
How much this inflation is from good side of inflation and how much of it relates to our old bad habits ?
On good part I can think of growth rate of a country , if your economy is growing you need same amount or slightly higher inflation percentage compared to your growth percentage otherwise in future you will lose this healthy growth.
you know better than me about bad habits so ...
I think it would be fair to add 9% (US inflation/ what is happening in the world) plus 7% (slightly more than growth rate) which equals to 16%.
This remaining 24% inflation should be priority of government to solve it's problems.and to be fair if you have a high inflation for a few years in a row it takes time to reduce it.