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Iraq's core inflation rises
JANUARY 12, 2012
Iraq's core annual rate of inflation jumped to 7 percent in December from 6.4 percent in November due to rising housing costs and electricity bills, a central bank official said on Wednesday.
The average of year-on-year inflation for all of 2011 was 6.5 percent, the same as 2010, central bank Deputy Governor Mudher Kasim told Reuters.
"The most important items which saw an increase were electricity and housing.
The rents have increased as well as the price of property.
Also the electricity bills," he said.
Iraq is slowly rebuilding 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.
Core inflation excludes expenditures on fuel.
Finance Minister Rafie al-Esawi has said the proposed 2012 budget of $100 billion, which has not yet been approved by parliament, is based on forecasts of 5 percent of gross domestic product growth and 5 percent inflation for the year.
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