Export products index rises 8.4%
The statistical index of Iran’s export products during March 21-April 20, reflect a growing trend compared to the figure for the preceding 30 day period.
According to the latest Central Bank of Iran (CBI) statistics, the index of Iran’s export items during March 21-April 20 stood at 344.3 units.
This comes as the point-to-point inflation during the same period reached 42.9 percent.
Over the past few weeks domestic media spotlight has been on inflation, economic policymaking and strategies and producers’ four percent tax exemption.
Export items statistical index
The CBI has released the statistics pertaining to the index of Iranian export products during March 21-April 20.
The CBI statistics show that during this time-span, this index amounted to 344.3 units indicating an 8.4-percent growth compared to the figure for the 30day period ending March 20, 2018.
However, during February 20-March 20, 2018, the monthly growth of export price index was -1.7 percent. Except for the 30-day period to March 20, in which the index was negative due to fluctuations in forex rates, during the rest of the days between September 22, 2017 and February 19, 2018, the monthly growth of this index was reported to be generally above three percent, which shows that the hike in foreign currency rates has led to a growing trend in the price level of export items in this duration.
Other CBI figures pertaining to export price index show that the point-to-point inflation of the index during the period between March 21 and April 20, 2018, witnessed a growth of less than 43 percent year-onyear.
This is while during the 30-day period to March 20, point-to-point inflation was reported at 32.7 percent. In one month (from March 21-April 20), this variable increased by 10.2 percent to set a record in the past 56 months. 2013 was the last time that Iran’s point-bypoint inflation rate and export price index were more than the figures in this period.
Inflation, policymaking, strategy
The results of a study by the Islamic Parliament Research Center show that after Iran’s inflation rate started a remarkable growing trend in 2011 and peaked in the period between May 22-June 21, 2013, with the point-to-point inflation setting an all-time high record of 45 percent rise, since June 22, 2013, monthly inflation rates began reflecting a decreasing trend which was maintained by 2017.
The fate of Iran’s inflation in the year to mid-march 2019, depends on the decisions by domestic policymakers and adoption of effective strategies for forex market and interest rates.
The study says that foreign currency rates are required to be adjusted in a gradual process in which short-term strategies are announced in advance to make it possible to amend the banking network and cut interest rates.
The Islamic Parliament Research Center maintains that the pressure on inflation rate intensifies in case policymakers’ fail to control fluctuations in the domestic forex market and, concurrently, reduce interest rates and implement reforms in the banking network.
Producers’ tax exemption
Granting tax exemptions to domestic producers was among the measures taken by the incumbent Iranian government to support producers and facilitate the production process.
Thus, as per a directive issued by the imports office of the Islamic Republic of Iran Customs Administration to customs offices across the country, those Iranian production units having production license and establishment permit are exempted from provisional payment of four percent of taxes on imports. This will help reduce the costs borne by Iranian producers to purchase raw materials.