TEHRAN -- In a live interview broadcast on national television on Sunday night, President Mahmud Ahmadinejad elaborated on the root causes of the existing high inflation in the country.

""Most of the people are feeling the inflation in their lives and in recent months the government has tried to find the main reasons behind the price increases,"" Ahmadinejad said in his national address aired on Channel 1.
Government is trying to direct resources toward production
The government is trying to direct financial resources toward investment in infrastructure projects and production activities, Ahmadinejad said.
""We are trying to curb inflation as we managed to do so in 2005,""he noted.
Citing factors in price rises, which he believed have started since 2006, the president said although oil price rises is beneficial for the country, it has also led into price rises at international markets.
And as a result, the price of imported commodities has in some cases multiplied, he noted.
The fall of the U.S. dollar is another reason, he said, adding that the dollar did not decline in the country because the government tried to fix it, and it caused the price of imported goods to rise up.
Excessive injection of liquidity is another cause
Elsewhere in his remarks, the top executive official said that a steep rise in liquidity into the market is another factor responsible for the current high inflation rate.
""Now we should ask where this liquidity emanates from?"" he said.
Traveler's checks
He said when the Central Bank governor was replaced, due to a lack of proper supervision, state banks printed too much traveler's checks illegally, which led into the injection of excessive money into the market.
It was a betrayal to Iran's economy, he said.
And also some financial institutions granted loans more than what was allowed by the Central Bank which in effect injected heavy liquidity to the country's economy.
Expected inflation was a key factor in price increases
""An organized psychological warfare, aimed at creating expected inflation, has been launched since two years ago,"" the president pointed out.
He said some false statistics about foreign investment, import, export, etc were cited repeatedly and certain media blew it out of all proportion and as a result, the expected inflation increased.
Elsewhere in his economic report, Ahmadinejad said those who criticize the economic policy should know that his administration is implementing the Fourth Development Plan and if this model is defective, they should honestly confess it.
Scientific discussion of inflation for the first time
The former minister of industries and mines Eshaq Jahangiri told Mehr News Agency that in his Sunday night speech, Mr. Ahmadinejad, discussed the inflation in a scientific manner for the first time.
Jahangiri said the president acknowledged the role of liquidity in creating inflation and declared the Central Bank responsible for that.
The president should call to account the individuals who have broken the law, Jahangiri insisted.
He then criticized the president for mentioning the Fourth Development Plan as one of the causes of inflation, saying that if the government believed that the development plan is defective, it could have presented the required bills to the parliament to amend it.
Meanwhile, Majlis Research Center Director Ahmad Tavakkoli told reporters that a positive point in president’s interview was a mentioning of a list of factors that have caused the existing high inflation.
In his remarks Mr. Ahmadinejad also condemned those responsible for the economic problems, which was a plus, the MP noted.
However, he put the blame on other things and people (global economy, his political rivals and Majlis), which is not acceptable, Tavakkoli pointed out.
Tavakkoli was among those few vocal MPs who was too critical of the parliament for authorizing the government to withdraw too much money from the oil fund in repeated bills