Iran's consumer price index grew 10.3 percent in the 12 months to June 21, down from 10.5 percent for the year to May 21, figures on the central bank's Web site showed. Inflation was 13.7 percent in the 12 months to June 21, 2005.
The figures, published on the central bank's Web site (www.cbi.ir), showed a 1.6 percent rise in consumer prices in Iran's urban areas in the month to June 21, up from 0.9 percent in the month to May 21.
Although inflation was lower than the previous year's figure, economists have warned that the government's expansionary monetary policy could ignite inflation.
President Mahmoud Ahmadinejad won Iran's presidential election last year promising to improve the living conditions of the poor by distributing the country's oil income more fairly.
His government has been using an oil dollar reserve for some current spending, even though the fund was designed to fund spending on investment or for budget support if oil prices plunged. But oil prices are currently still around record highs.
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