Prices in Iran rose 17.3 percent in the year to August 22, the central bank said, releasing data showing inflation picking up again in the oil-rich state after a dip earlier this year. The rate was 17.1 percent in the year to July 22, which in turn was an increase from 16.1 percent the previous month.
But the central bank's latest inflation figure is still below the 17.6 percent rate recorded in February. Iranians often complain official figures do not correspond to price rises they see in shops, which economists say is partly because most people are concerned about a narrower range of goods and partly because the basket includes subsidised items.
Economists say profligate spending of Iran's oil revenue is helping to stoke inflation, but the government of President Mahmoud Ahmadinejad says the problem has been exaggerated and that price rises are under control.
He came to power in 2005 on a pledge to distribute Iran's oil wealth more fairly, but his economic policies face growing criticism from the public, the media and economists for failing to cut double-digit inflation and jobless rates.
In July, Ahmadinejad told state firms not to raise prices and threatened to punish violators, a move critics said would encourage corruption rather than tame inflation.
The world's fourth largest oil exporter has made windfall gains from the high oil price in recent years, but economists say international sanctions imposed on Tehran over its disputed nuclear programme are hurting investment and growth.
Western powers suspect Iran's atomic work is aimed at making bombs, a charge the Islamic state denies. The central bank did not give details for the year to August 22, but said food prices rose by 23 percent in the previous month compared with the same month in 2006.