Iran Case Study Iran's inflation rate climbed above 30 per cent in 2013, reaching 31.5 per cent at the end of the Islamic country's calendar year (Table 18.5). The country, with a population of 74.8 million, had experienced double-digit inflation rates for most of the previous decade. At the end of 2010, the government reduced food and fuel subsidies, thereby fuelling inflation. In addition, international sanctions due to Iran's disputed nuclear programme forced down the value of the Iranian rial, the country's official currency. This added upward pressure on prices in the economy. Table 18.5 Inflation rate in Iran Date Inflation (%) March 2012 26.4 Dec 2012 27.4 March 2013 31.5 Source: Reuters 1 With reference to the data in Table 18.5, explain why prices in Iran were generally higher in 2013 than in 2012. 2 Explain two reasons why the Iranian government might aim to control the level of inflation in its economy. 3 Examine how some Iranians are likely to have been more affected than others by the double-digit inflation rates