Wednesday, December 3, 2008

Low Oil Prices,Massive Inflation In Iran

Iran's President Concedes...

President Mahmoud Ahmadinejad has acknowledged publicly for the first time that tumbling oil prices are hurting Iran's fragile economy, a sensitive subject for the leader critics have accused of mismanaging the country's finances, state media reported Wednesday. Oil prices have plunged more than 60 percent since the summer as a faltering global economy reduces demand. Ahmadinejad said that will force the government of the world's fourth largest oil exporter to make painful spending cuts, official news agency IRNA quoted Ahmadinejad as saying.... Many economists believe cutting fuel subsidies will take Iran's inflation over 50 percent from the current 30 percent.

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