Iraq’s Central Bank reports decline in 2023 inflation rates

The Central Bank of Iraq (CBI) delivered promising news on Thursday, revealing a substantial decrease in the country’s inflation rate for the year 2023. According to a statement released by the CBI, inflation in Iraq plummeted to a mere 3.7 percent by August 2023, marking a significant improvement from the 4.4 percent recorded in August 2022, as reported by the Iraqi News Agency (INA).

In its announcement, the CBI highlighted the favorable position of Iraq’s inflation rates when compared to neighboring countries in the region. Notably, Iran has experienced an alarming inflation rate of 46 percent, while Turkey faces an even higher inflation rate of 57 percent. In contrast, the United Arab Emirates reported a more modest inflation rate of 3.4 percent, and Saudi Arabia recorded 2.4 percent, as stated by INA.

The Iraqi Ministry of Planning had confirmed the stability of inflation rates in September, with Abdul Zahra Al-Hindawi, the ministry’s spokesperson, reporting that monthly inflation remained unchanged compared to August, except for a minor increase of 0.5 percent. Furthermore, the annual inflation rate for September saw a 3.6 percent rise compared to the same month in 2022.

Data from the Central Statistical Organization (CSO) of the Iraqi Planning Ministry indicated a four percent increase in the annual inflation rate for April 2023, compared to the corresponding period in 2022.

However, the International Monetary Fund (IMF) painted a different picture in its latest report, forecasting an increase in Iraq’s annual inflation to 6.6 percent in 2023. The IMF noted that in 2020, Iraq’s annual inflation was a mere 0.6 percent, which escalated to six percent in 2021.

Interestingly, expectations outlined in the IMF report suggest a potential decline in Iraq’s annual inflation rate to 1.6 percent in 2024, offering hope for improved economic stability in the coming year.