The Evaluation of Factors Affecting General Price Increase Levels in the Economy of Iran

In this Paper we assess the factors affecting the cost increase in Iran during 1971-2005. Therefore, it is necessary to have a glance at the texts discussing the manner and the main sources of information such as Statistical data of the Central Bank, Management and Planning Organization, and International Money Fund, utilizing the OLS Method to evaluate the economical patterns in the country. In this paper the main explanatory variables are population, foreign currency, and amount of money, exports and oil income. The final results demonstrate that these are the main variables affecting the cost increase in Iran. Thus, the government should put into practice the concretionary monetary policy, during the fourth program of economical development and the outlook of country’s next 20-year program as well.