Iraq Economy and Inflation ~ Specialists warn that the continued rise in inflation in the country ...

November 29, 2011

Specialists warn that the continued rise in inflation in the country

Markets witnessed the capital Baghdad and other provinces rises slightly in the price of food, clothing, household items, both attributed the observers reasons that rises to the expensive prices in the countries of origin on the one hand and to the uncontrollable price of the market, which is not subject to control and the laws of the competent authorities in Iraq,

in the meantime confirmed Central Agency for Standardization and quality control high rates of inflation for the past month by 5 percent, which called for many professionals to warn of the consequences of continued high inflation indicators, which they said will contribute to the reduction of the growth processes as well as causing increased rates of poor and needy.

The economic researcher as Abdul Hadi said inflation in Iraq in total due to increased supply of money winning by the expansion of the general budget and increase government spending, is that Abdul-Hadi said during his speech (morning) that the most prominent factors that led to the worsening inflation in Iraq back to the inconsistency two policies of financial and cash in the country and the different visions and destinations between the central bank and politicians, which purports to from behind, to address inflation and other policies that prevent the application of the efforts the Central Bank.

Continues ...read more ..

He said Abdul Hadi said the expansion of government spending will shift to the private sector by spending multiplier, as well as increased demand for goods and services and increased demand it, and the high rate of import, which leads to the result of increased demand for foreign currency and thus leads to high rates of inflation.

hinted researcher that inflation varies from month to month, but that the result is tremendous pressure on money supply and thus cause a decline the value of the dinar against the rest of the foreign currency and this damage is most likely posed by inflation in Iraq.

In order to reduce the effects of inflation, which could reflect negatively on the overall economic process in Iraq, he called Abdul Hadi need to activate the real sectors productivity Kalqtain industrial and agricultural in order to meet part of domestic demand, winning many materials that are imported at the present time, and this can be traced by the equilibrium price of the material.

The Ministry of Planning has announced the registration of slightly higher inflation-indexed in Iraq for a month last October by 0.3 percent compared with September the previous year.

The statement by the Ministry of The inflation indices for the period from October 2010 until October 2011 saw were higher by 5 percent. The statement noted that the Central Bureau of Statistics completed the inflation report for the month of October 2011 which was prepared on the basis of collected field data on the prices of goods and services components of the consumer basket of selected sample of outlets in all provinces of the country.

The statement said that prices in the Kurdistan region recorded in the month of October 2011 compared to the previous month, a drop of 0.1 percent resulted mainly from a decrease in the prices of food and non-alcoholic beverages by 0.1 percent, and prices of clothing and footwear by 0.2 percent, and transport prices by 1.3 percent, and the prices of recreation and culture by 0.1 percent, and prices of miscellaneous goods and services at 2.7 percent. and the average prices in the central region during the month of October 2011 compared to the previous month rise of 0.5 percent resulted mainly from the increase in prices of food and beverages non-alcoholic rate of 0.4 percent, and prices of clothing and footwear at 0.6 percent, and housing prices at a rate 1.0 percent, and prices of health, a rate of 0.6 percent, and the prices of restaurants by 0.1 percent, and prices of miscellaneous goods and services at 0.6 percent.

The statement also said that prices in the south recorded in the month of October 2011 compared to the previous month increased by 1.1 percent resulting mainly from the increase in prices of alcoholic beverages and tobacco by 0.7 percent, and housing prices by 8.7 percent, and prices of health by 0.5 percent, and the prices of recreation and culture by 0.1 percent, and the prices of restaurants, a rate of 0.4 percent.

link