The announcement from the Central Bank of Iran (CBI) that the official inflation rate has hit 40.4% for the year ending with the month of Mehr (on 22 October), underlines the precarious economic situation in the country, which is likely to become worse before it gets better.

This is up from 36% for the year to 22 September (MEES, 4 October). The Statistical Center of Iran has estimated a lower rate of 36.2% for the year to Mehr. But the real inflation rate in the country is believed to be double the CBI estimate, according to independent sources and recent visitors to Iran. (CONTINUED - 707 WORDS)