Thursday, June 23, 2011Iraq Central Bank: Inflation rate to reach 7% in Iraq in June
On Wednesday, Iraq Central Bank expected inflation rate in Iraq to reach 7% and pointed that the increase of oil prices is one of the main reasons of inflation in the country. To that, the same source stressed that the national goods production is weak if compared with services sector which is booming.
Iraq inflation rate was 3% and was expected to reach 6.1% in a month. Iraq Central Bank Advisor Mazhar Mohammad Saleh told Alsumarianews that “Inflation in Iraq rose since the beginning of the year and reached 7% till now”.
Iraq bears the inflation caused by the raising prices of goods worldwide because it is an importing country and stressed that the increasing oil prices are causing inflation in spite of the revenues it is bringing to Iraq, Saleh added.
The political problem also affects the volume of inflation as it confuses expectations and creates a state of uncertainty, Saleh uttered. He also said that Iraq produces a little quantity of goods while on the other hand its services sector is booming and this situation started reflecting on the record prices.
Iraq Ministry of Planning and Development Cooperation had announced in June 19 that the inflation indicator increased in May 2011 if compared with the previous month and stressed that the inflation rate largely increased if compared with that of May 2010.
In April, Iraq Ministry of Planning said that in March inflation rate decreased 7% if compared with the previous month, however it increased in comparison with that of March 2010.
Deputy Minister of Planning and Development Cooperation, Mahdi Al Allak, said during an interview with Alsumarianews in January 16, 2011 that the inflation rate for the last year considerably decreased if compared with the previous years and stressed that in 2010 the indicator ratio was of 3% in comparison with 53% in 2006 and 7% in 2009.
http://www.alsumaria.tv/en/Economics-News-Iraq/3-65636-Iraq-Central-Bank%3A-Inflation-rate-to-reach-7%25-in-Iraq-in-June.html
