Iran says inflation declining

TEHRAN, Iran

Iran's central bank says the country's inflation rate has declined to 8.8 percent in August.

The Central Bank of Iran, in figures posted Monday on its Web site, said inflation in July was at 9.1 percent. It predicted that the inflation rate will drop further in September. The central bank did not provide any explanation for the decline.

Iran had suffered from double-digit inflation rates for years, but the figure has dropped below 10 percent since May.

A number of cost-cutting measures, largely focused on curbing subsidies, are planned. But analysts worry that such moves could propel inflation significantly higher as key commodities are effected. Many experts believe that inflation is still above 20 percent, despite the government's figures.