LATEST: Inflation Remains at 35%

Amid Iran’s effort to boost economic and political links with Turkey, Prime Minister Recep Tayyip Erdoğan has arrived in Tehran for a two-day visit.

Ankara has said that the two countries “will sign an agreement to establish a high-level cooperation council” during the trip.

Trade between Turkey and Iran was $22 billion in 2012, despite international sanctions. The two countries have said they will raise the amount to $30 billion this year, and Tehran is declaring its aim of $100 billion within a few years.

The Islamic Republic is also looking to rebuild its diplomatic position with Ankara after strains over the Syrian conflict. As late as 2010, Turkey was a key broker on the nuclear issue, putting forth the Tehran Declaration with Iran and Brazil in an attempt at an agreement on uranium enrichment. The US rejected the effort, preferring to pursue sanctions.

US Treasury official David Cohen, who leads the implementation of American sanctions policy, tried to maintain pressure on Turkey on Monday, saying that “Iran is not open for business” despite the easing of some financial measures in November’s interim nuclear deal.

See US Tells Turkey, “Tehran is Not Open for Business”

Turkish imports of Iranian oil and gas have been limited by US-led restriction on financial restrictions. A ban on transfers of gold, used by Ankara to finance some of the imports, is being lifted in the implementation of the nuclear agreement.

Supreme Leader’s Representative Spoils the Welcome for Erdoğan

In a note of criticism before Erdoğan’s arrival, the Supreme Leader’s Deputy Representative to the Revolutionary Guards, Abdullah Haji Sadeghi chided the Turkish Prime Minister over his role in the Syrian crisis: “Erdogan had turned into a puppet in the hands of the Zionist regime, but very recently we have been witnessing that he is waking up from sleep.”

Inflation Remains at 35%

The Statistical Center of Iran has announced that the inflation rate for the 12-month period ending on December 21 was 35%, a 0.5% fall from November.

The point-to-point inflation rate was lower at 27.5%.

President Rouhani, who inherited a rate of more than 40% in August, has pledged to bring inflation below 10% in the next three years.