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Iraq sees 7pc inflation rate
Posted on » Monday, June 20, 2011
BAGHDAD: Iraq's core annual inflation rate was not expected to exceed seven per cent in 2011 as the economy remained relatively stable, with a steady flow of goods and no unexpected government expenditure.
Iraqi central bank deputy governor Ahmed Al Buraihi said yesterday the bank did not plan to increase interest rates - which were cut to 6pc in April 2010 - to combat inflation.
"I don't expect that the inflation rate will exceed 7pc," Al Buraihi said.
"The interest rate now is acceptable ... The central bank will not resume this policy, now and forever."
Iraq's core inflation rate quickened to 6.3pc in May from 6.1pc in April, driven mainly by the cost of imported goods and of services, particularly healthcare. The local market is flooded with international goods as production in the country remains low following years of war and economic sanctions.
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Posted on » Monday, June 20, 2011
BAGHDAD: Iraq's core annual inflation rate was not expected to exceed seven per cent in 2011 as the economy remained relatively stable, with a steady flow of goods and no unexpected government expenditure.
Iraqi central bank deputy governor Ahmed Al Buraihi said yesterday the bank did not plan to increase interest rates - which were cut to 6pc in April 2010 - to combat inflation.
"I don't expect that the inflation rate will exceed 7pc," Al Buraihi said.
"The interest rate now is acceptable ... The central bank will not resume this policy, now and forever."
Iraq's core inflation rate quickened to 6.3pc in May from 6.1pc in April, driven mainly by the cost of imported goods and of services, particularly healthcare. The local market is flooded with international goods as production in the country remains low following years of war and economic sanctions.
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NewsPaper
