TEHRAN, Iran, Dec. 25
Trend:
Iranians do not have the purchasing power and that is why the home appliance market is stagnant, said the chairman of the Iranian Home Appliances Trade Union.
"Goods are abundant in the market, but the prices are too high, due to the high prices of raw materials," The chairman of the Iranian Home Appliances Trade Union, Akbar Pazouki tod Trend.
Pointing to the decrease in the foreign exchange rate and its potential impact on the stability of home appliance prices, he referred to the Minister of Industry, Mine and Trade`s remark on car prices.
"The minister said that car prices have not been reduced despite the decrease in the foreign exchange rate due to the inflation rate," he said adding that "Therefore, given the current inflation, we can not expect the price of domestic products to be decreased immediately with a minimum decrease in the foreign exchange rate."
He went on to say that 70 percent of the home appliances' raw materials are produced domestically and the rest is imported.
"Meanwhile, the decrease in the rate of foreign currency affects 30 percent of imported raw materials," said Pazouki.
"Given the stagnant and the recession in the market, we expect the government to lower the tax receipts for Home Appliances in the coming year," he said.
The Statistical Center of Iran (SCI) announced that the inflation rate in the twelve-month period ended on December 20, which marks the end of the ninth Iranian calendar month of Azar, stood at 30.5 percent, rising 1.5 percent from the figure for the twelve-month period ended on the last day of the eighth month.
Central Bank of Iran (CBI) in a statement in April announced that the annual inflation rate for the current Iranian calendar year (ends on March 20, 2021) is set to be 22 percent.