Economist estimates Iran's annual inflation rate at 105.8 per cent

The Cato Institute's Steve Hanke has estimated Iran's annual inflation rate to be 105.8 per cent - almost three times the official annual inflation figure.

He uses purchasing power parity to calculate inflation using the country's "black market" IRR/USD exchange rate (currently 36,450).

Campaigning for the election to replace Mahmoud Ahmadinejad ended today in time for the vote tomorrow. The next president will have to deal with this incredible inflation rate, and with the international sanctions still dragging down the country's economy.