Continuous fluctuations and absent solutions.. Inflation in Iraq from explosion to recession

Posted on[You must be registered and logged in to see this link.] by [You must be registered and logged in to see this link.]

[size=52]Continuous fluctuations and absent solutions.. Inflation in Iraq from explosion to recession[/size]

[size=45]Inflation is still fluctuating in Iraq, while the government is working to reduce its rate. Economic researcher Nabil Jabbar Al-Tamimi comments on the inflation rate in Iraq and the possibility of working to reduce that rate, while identifying the party responsible for its rise and fall.
Al-Tamimi said, “Internal and external reasons during the years 2021 and 2022 led to the highest levels of inflation in Iraq in the past ten years, until the annual inflation rate approached 9 percent and perhaps more.”
He explained that “the policies of the previous government and Central Bank administration played a major role in raising inflation in Iraq due to the two previous administrations raising the dollar exchange rate and printing large amounts of currency, while the external reasons were related to global inflation and rising commodity prices.”
Al-Tamimi added that “Al-Sudani’s government and the new administration of the Central Bank worked on policies aimed at reducing inflation, and indeed the Central Bank was able to reduce the exchange rate and restrict the printing of money, which led to a decrease in inflation levels and the return of prices to approximately pre-2020 rates, and the current rate is almost normal and is not within the dangerous stages.”
Earlier, the “Iraq Al-Mustaqbal” Foundation for Economic Studies and Consultations announced that the annual inflation rate in May 2024 rose by 3.4% across Iraq, according to inflation data issued by the Central Statistical Organization.
The foundation stated in a report that the annual inflation rate in the Kurdistan Region reached 5.34%, while the inflation rate in the central governorates reached 2.25%, and the inflation rate in the southern governorates reached 2.6%.
According to the report, the highest price increases were in electricity services, which rose by 45.47%, cigarettes by 23.7%, fish by 14%, entertainment services by 12.9%, and meat by 10.39%.
The foundation also indicated that dairy products, oils, fruits and vegetables witnessed a decrease in inflation rates in all Iraqi governorates.
For its part, the Federation of Chambers of Commerce in Iraq held the government and its committees specialized in monitoring the state of the Iraqi economy responsible for the high levels of inflation and trying to address them before they occur.
Inflation did not witness a wild rise in its monthly and annual rates in Iraq.
Union member, Subaih Al-Hashemi, said that the rise in inflation levels negatively affected the market situation, indicating that the unstable Iraqi markets caused high inflation rates and high price levels, in addition to their direct impact on the citizen who faces major economic challenges.
Al-Hashemi pointed out that there are regional and international influences, in addition to the security problems surrounding Iraq and the dollar issue, which contributed to the rise in inflation rates, and a large number of traders suffered huge losses due to this problem. He held the Iraqi government, especially the Ministries of Finance and Planning and the Central Bank Administration responsible for not setting the necessary policies to limit this rise and address it before it is too late.
The inflation index is one of the most important economic indicators that illustrate the impact of various economic activities occurring in the country, which requires continuous monitoring and auditing by various regulatory bodies to adopt accurate and correct data that reflects the true reality of the economic events occurring in Iraq.[/size]
[size=45][You must be registered and logged in to see this link.]