Inflation's freefall: Iraq hits 2.8%, economic hopes soar
Shafaq News/ Iraq’s annual inflation rate has dropped to2.8% in the fourth quarter of 2024, down from 4% a year earlier, the centralbank (CBI) announced on Wednesday.
In an official statement, CBI confirmed that core inflation,which excludes volatile food and energy prices, had also declined to 2.5% from4.5% in the same period of 2023.
“Both headline and core inflation remain within acceptablelevels, reflecting price stability and the effectiveness of Iraq’s monetarypolicy,” the statement read.
The latest figures point to a slower rise in consumerprices, strengthening purchasing power and reinforcing economic stability.
Notably, Iraq has experienced inflation swings in recentyears. The annual rate stood at 5% in 2022 before climbing to 6.6% in 2023,driven by currency fluctuations and the impact of the Russia-Ukraine war.
Projections for the coming years remain mixed. AnInternational Monetary Fund report in October 2024 forecast a slight increaseto 3.5% in 2025, before easing to 3% by 2029.
