Iraq inflation falls to 6.9%

By REUTERS
Published: Nov 22, 2011 12:35 Updated: Nov 22, 2011 12:35

BAGHDAD: Iraq's core annual rate of inflation fell to 6.9 percent in October from 7.3 percent in September, driven mainly by a dip in the cost of food items, a central bank official said on Tuesday.

A fall in the cost of clothes and industrial items also helped lower inflation last month, central bank Deputy Gov. Mudher Kasim told Reuters by telephone.

"It is a good decrease, the trend is declining," he said.

Core inflation excludes expenditure on fuel.

Iraq is slowly trying to rebuild as it recovers from decades of war and economic sanctions. Its economy is dominated by oil, which accounts for around 95 percent of government revenue.

Finance Minister Rafie Al-Esawi said in September Iraq aimed to keep inflation at 5 percent in 2012.

Another central bank deputy governor, Ahmed Al-Buraihi, said in June that the country's core annual inflation rate was not expected to exceed 7 percent in 2011 [You must be registered and logged in to see this link.] [b]

Nice article. The CBI is has done an excellent job. But imo this rate will not stand if they continue to import the things they need day by day.

Also their infrastructure really needs to be addressed.

The Central Bank says that inflation comes because of high electricity prices mainly wage basis.
Iraq still suffers from no major power has not failed any minister took over the ministry after 2003 to find a solution to the devastating Gaza, despite the huge money from oil revenues.
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Iraq is a country that is quickly moving into the main stream. I believe this Thursday there is a reading of a Law the effects trade. If so it would greatly improve the change of becoming a member in the WTO. They do not need a tradeable currency to become a member, but without one they would be limited in their membership. It would however increase imports and exports, which is great for Iraq.

In any case it is very clear Iraq is becoming a NEW Iraq rather quickly. At some point they will have to revalue the currency to become much stronger and provide the needs of its people.