Inflation rate in Iraq declines in 2023 compared to 2022

The Central Bank of Iraq (CBI) announced a notable reduction in the country’s inflation rate for 2023 compared to the previous year. According to the CBI statement released on Wednesday, Iraq’s price stability stands out favorably against global trends, with many countries experiencing inflation rates as high as 30 to 40 percent, as reported by the state news agency (INA).

In August 2023, Iraq’s inflation reached approximately 3.7 percent, down from 4.4 percent in August 2022, despite an overall surge in inflation among Iraq’s trading partners, the statement revealed. Notably, neighboring Iran faced a 46 percent inflation rate, while Turkey experienced around 57 percent.

This accomplishment reflects the success of the CBI’s policy in maintaining price stability and containing inflation within acceptable limits. In comparison, the United Arab Emirates recorded a 3.4 percent inflation rate, and Saudi Arabia reported 2.4 percent.

The Iraqi Ministry of Planning affirmed last month that the inflation rate remained stable in September. Abdul Zahra Al-Hindawi, spokesperson for the Planning Ministry, highlighted that Iraq’s monthly inflation rate in September remained unchanged from August, with only a 0.5 percent increase.

The Central Statistical Organization (CSO) of the Iraqi Planning Ministry recorded a four percent increase in the annual inflation rate in April 2023 compared to the same period in 2022.

In a recent report, the International Monetary Fund (IMF) projected an annual inflation increase in Iraq to 6.6 percent in 2023. The IMF noted that Iraq’s annual inflation was 0.6 percent in 2020, rising to six percent in 2021. However, expectations suggest a decrease in the annual inflation rate for Iraq in 2024, projected to be 1.6 percent.