Iran c. bank sees rising inflation as sanctions hit output

February 25, 2013 14:08

DUBAI - Iran's inflation is continuing to rise and is likely to top 30 percent in coming weeks as economic sanctions contribute to shortages and stockpiling by anxious consumers, the central bank governor was quoted as saying on Monday.

"The reduction in supply of some product lines and the psychological effect of concern about access to goods have led to inflation," the Iranian Students' News Agency quoted Mahmoud Bahmani as saying at a conference on monetary policy.

Bahmani said output in areas such as dairy products, vehicles and ferrous and non-ferrous metals had dropped, prompting consumers to buy out of concern they could lose access to such goods.

His remarks were an unusually frank description by a government official of an economy which has been hit hard by U.S. and European sanctions imposed over Iran's disputed nuclear program.

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