Inflation in sanctions-hit Iran rose to 19.8 percent in November, the head of the central bank said on Sunday, continuing a 15-month increase as prices are pressured by growing economic isolation and reduced government subsidies.
"The situation of sanctions is harder than a physical fight and we have started a full economic fight," Central Bank Governor Mahmoud Bahmani was quoted as saying by state broadcaster IRIB, as he told reporters the latest data.
Inflation has risen steadily from a 25-year low of 8.8 percent in August 2010. In October it was 19.1 percent. According to an International Monetary Fund report based on government data, Iran can expect consumer price inflation of 22.5 percent for the Iranian year ending March 2012.
While the biggest inflation driver was the government's decision to slash billions of dollars of subsidies on food and fuel a year ago, tightening sanctions have also had an impact, economists say, as the cost of importing goods has risen due to restrictions on cross-border financial transactions.
The European Union is considering banning imports of Iranian crude as the latest sanction aimed at forcing Tehran to curb the nuclear programme that the West fears is aimed at developing atomic bombs, a charge Iran denies.
Britain evacuated all its diplomats from Iran after its embassy was invaded last month by radical youths demonstrating at London's decision to impose sanctions on the Central Bank of Iran.