Iran president turns to butcher for economy tips

TEHRAN, June 23 (Reuters) Highlighting a common touch that has become a trademark of his presidency, Mahmoud Ahmadinejad has said he keeps his finger on Iran's economic pulse by talking to his butcher, newspapers reported today.

''We have hardworking shopkeepers in our neighbourhood from whom I get important economic information because they are living among the people,'' Ahmadinejad, the son of a blacksmith, was quoted by Iran's Sharq daily as saying.

''For example, there is an honourable butcher in our neighbourhood who is aware of all the problems of the people and I also get important economic information from him,'' he said in a meeting with worker unions, Sharq reported.

Another daily also carried the comments.

It is not the first time Ahmadinejad has pointed to his local shopkeepers when addressing Iranian economic issues.

Facing complaints about inflation, he told parliament in a budget speech in January that Iranians should pop around to his neighbourhood grocer to buy tomatoes where he said they were much cheaper than the soaring prices he said others were citing.

Ahmadinejad swept to power in 2005 with a down-to-earth campaign vowing to share out Iran's oil wealth more fairly. He stages regular regional tours, promising cash to provinces where many previously felt neglected by central government.

But economists say his policies of lowering interest rates and doling out Iran's windfall oil earnings are pushing up inflation, which they say is mainly hurting the poor who the president has said he is most eager to help.

Inflation was running at more than 17 per cent in February, when the central bank last released figures for the consumer price index.

Economists say prices are continuing to climb, a major grumble among ordinary Iranians.

Ahmadinejad has dismissed such criticism saying inflation is an issue that predates his government and has accused the media of exaggerating the problem.

Reuters AK GC1723