This article focuses on the problems of the distribution network and discusses some of its characteristics.
From section one to section four, the meaning of inflation, the level
of prices per family income (real and nominal), the expenditure in urban and rural areas, and the prime causes of inflation in Iran are briefly
dealt with.
In section five, some structural features of the distribution network are analyzed. In this part, the problems such as large numbers of distributive units, their small sizes, low turn - over, mainly traditional build - up of the units and the whole system are demonstrated.
Finally it comes to the conclusion that a system bearing such features and functioning in a noncompetitive market would have no effect on the prices but pushing them further up.
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