Inflation in Iraq was 5.6% over last six months: planning ministry

People shop in the main Shurja market in central Baghdad, Iraq on March 10, 2020. (Photo Credit: Hadi Mizban/ AP)

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SULAIMANI — Iraq’s Ministry of planning said on Wednesday (May 12) that due to the devaluation of the Iraqi dinar, increase in inflation rates during the past six months from November 2020 to April 2021 amounted to 5.6%.

The Ministry said in a statement that the rate increased by 3.3% in December compared to November, while the rate slightly rose by 0.8% in January, 0.7% in February, 0.6% in March, and 0.1% during April.

It said that the Central Statistics Office continues to monitor prices in the country’s local markets in all governorates on an ongoing basis.

Iraq devalued the dinar significantly as a part of the 2021 Federal Budget Law to 1,450 Iraqi dinars per US dollar, from the previous official rate of 1,182.

The devaluation was designed to preserve Iraq’s dollar reserves and allow the government to spend more Iraqi dinars. The move however made imports and goods originally priced in other currencies, like hydrocarbons, more expensive.

(NRT Digital Media)