The Central Bank of Iraq has announced a reduction in the country’s annual inflation rate to 2.8%. In a recent statement, the bank reported that annual inflation decreased from 4% in the fourth quarter of 2023 to 2.8% for the same quarter in 2024.
In addition, the core inflation rate also fell, declining from 4.5% in the fourth quarter of 2023 to 2.5% for the same period in 2024. These figures indicate that both general and core inflation are at acceptable levels, which reflects a state of price stability and highlights the effectiveness of Iraq’s monetary policy.
Over the past years, Iraq has experienced significant fluctuations in inflation rates. Looking ahead, projections from October 2024 suggest a mild increase in the inflation index, with the International Monetary Fund anticipating a rise to 3.5% in 2025, followed by a decrease to 3% by 2029.
The reduction in inflation translates to a slower increase in the annual prices of goods and services, thereby enhancing the purchasing power of citizens and contributing to economic stability.
