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Iran Postpones Further Subsidy Cuts to After March, Shargh Says

Iran’s government has postponed further cuts in energy and food subsidies until the next Iranian year that starts March 21, 2013, Shargh reported, citing Saeed Arbabi, a member of the parliament’s economic committee.

The government and the economic committee made the “rational” decision to halt the plan in light of the level of inflation, Arbabi said, according to the Tehran-based newspaper. Raising prices by as much as 20 percent when they are already high “would have serious consequences,” he said.

Iran started a five-year program in December 2010 to gradually remove food and energy subsidies.

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