Iraq's Annual Inflation Rate rises to 3.4% in May 2024, report shows
Shafaq News/ On Friday, the Iraq Future Foundation for Economic Studies and Consultations reported a 3.4% increase in the annual inflation rate for May 2024 across Iraq, according to data from the Central Statistical Organization.
The foundation's report detailed that annual inflation in the Kurdistan Region reached 5.34%, while it was 2.25% in central Governorates and 2.6% in southern Governorates.
The report highlighted significant price increases in specific sectors, with electricity services rising by 45.47%, cigarettes by 23.7%, fish by 14%, recreational services by 12.9%, and meat by 10.39%.
In addition, the report noted a decrease in the inflation rates of dairy products, oils, fruits, and vegetables across all Governorates in Iraq.
The report observed that prices for goods imported from countries with restricted financial transactions, which rely on the parallel market for foreign currency, such as vegetables, fruits, dairy products, and oils, had decreased. In contrast, prices for goods imported through financial transactions, such as meat, electrical appliances, home appliances, and furniture, had increased. This suggests that external factors more significantly influence inflation rates in Iraq than the exchange rate in the parallel market.
Additionally, the report noted that inflation rates for fuel had not increased despite a 100% rise in the price of premium fuel in May. This anomaly suggests potential issues with the method of calculating inflation rates.
