Iran's inflation hit 27.6 per cent in the month of Mordad that ended on 21 August, the central bank said Sunday. The consumer price index (CPI) in urban areas also increased by 27.6 per cent compared to the same month in the previous year, thus confirming that prices are on a runaway trend in Iran.

A month earlier inflation reached 26.1 per cent, whilst in the two previous months it was 25 and 24 per cent respectively.

The inflation mostly affected staples such as meat, beans and rice whose prices have doubled in a yearly comparison. If milk and bread were not subsidized they too would have been hard hit by inflation. Now a four-member family can spend up to 80 per cent of its income on food each month.

Despite having pledged economic improvements, inflation and the economy are President Mahmoud Ahmadinejad’s weak points. Instead his government has paid closer attention to military issues. In fact, Iran is now conducting previously announced maneuvers designed to test the anti-naval capacities of the armed forces and the Guardians of the Revolution.